Get Mortgage-Ready in 5 Steps
Most buyers find out their credit isn’t ready the day a lender pulls it. Work through these five steps in order and you’ll walk into that first conversation knowing your scores, your numbers and your next move. I’m Dan Frio, a mortgage loan officer for 38 years and host of The Rate Update; this is the same order I give every buyer.
Before step 1: opt out of prescreened offers so the credit bureaus stop selling your name to lenders and insurers. It’s free and takes about five minutes.
Check your free credit scores
See where you stand today, with no cost and no effect on your score. Read your reports for errors while you are there.
Understand your mortgage scores
The score in a free app usually is not the score a mortgage lender uses. Lenders can use Classic FICO or VantageScore 4.0 for Fannie Mae and Freddie Mac loans, pulled from all three bureaus.
Build and monitor your credit
Fix errors, pay down balances in the right order, and watch all three reports while you prepare.
Budget for a home
Know the monthly payment you can live with, not just the price a lender will approve. Include taxes, insurance and the cash you need to close.
Find out if you are ready to buy
When your credit and budget line up, one application lets you compare offers from 30+ mortgage lenders with a single credit pull.
Some links on this site are affiliate links; we may earn a commission at no cost to you. Mortgage information is educational and not a commitment to lend. Dan Frio | NMLS #246527 | PBT Bancorp | NMLS #257781 | Equal Housing Lender | 524 Main St, Hazard, KY 41701.