Pretty much everyone knows that in order to obtain a loan for your home purchase at a competitive rate you need to have a good credit score. If your credit is less than stellar you may still obtain a loan but it could come at a higher interest rate and the need for a larger downpayment to make you less likely to walk away thus protecting the lender better.
For most people it makes sense to consult with a lender before you even begin to look for a house. Firstly, you need to know how much you are able to borrow, or in some cases how much you are willing to borrow. Secondly, in order for an offer on a home to be taken seriously a seller will want to know that you have been pre-approved and not just pre-qualified, which essentially means the lender has verified your information and you are ready to purchase, usually subject only to a clear title and a satisfactory appraisal.
Another reason to get started early is that you would be surprised how many times a person runs their credit report and finds something that isn't theirs, or that they forgot about. Even genuine mistakes can take weeks to resolve and you may miss out on the opportunity to buy your dream home.
Lenders reserve the right to, and often will, run your credit report prior to funding so hold off on buying that new Lexus, or all that new furniture until after you close escrow. Also, changing jobs before close of escrow could jeopardize the loan.
Now all you have to do is keep up those payments.
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