If you’re thinking about buying a home, you need to start preparing to have the best possible credit when applying for a mortgage loan.

First, pay attention to your accounts. Don’t close any accounts or open any new ones when preparing to buy a home. Also, make sure your credit to debt ratio looks good on all your open accounts. If you have a $500 limit, don’t let the balance sit at $495.

Next, don’t switch jobs. If you do need to switch, try to stay in the same field so lenders have information about the switch. They want to see some job security, so if you’ve hopped around a lot that can be a problem.

“DON’T CLOSE ANY ACCOUNTS OR OPEN ANY NEW ONES WHEN PREPARING TO BUY A HOME.”

Pay attention to your balances. If you have a high limit and you’ve maxed that out, it won’t look good to lenders. On the other hand, if you had a credit card that you use and pay off regularly, lenders will love that.

Finally, don’t make any big purchases until after closing on a home. After you’ve got the keys to your new home, feel free to get that new furniture, just hold off until then.

If you have any questions or are looking to buy or sell a home, please feel free to give me a call or send me an email. I’m always happy to help.