The home-buying journey often goes much smoother when you prepare before diving in, and your credit score should be a key priority as you prepare to purchase a home. A strong credit score is essential to securing the best terms on your mortgage. If it could use a little work, don't worry. Our real estate agents have compiled a guide to credit score essentials to help you navigate the home-buying journey.

• It Helps to Start Early
  While there's much you can do to improve a credit score that needs a boost, it will take a little time before your efforts yield the desired result. So, the best time to start working on your credit score is as soon as possible to ensure everything is in order as you take the next steps toward purchasing a home. 

• Check Credit Report and Scores
  Before you can improve your credit score, knowing exactly where things stand is critical. In addition to helping you formulate a plan, a close look at your credit score can help you uncover any mistakes that may be present. If you find a mistake, especially regarding a late payment or closed account, contact the credit bureau to dispute it.

• Pay Bills on Time
  When it comes to maintaining a good credit score or improving one that needs a little work, there's no substitute for paying bills on time. Missing payments can hurt your credit score and remain on your report for up to 7 years.

• Bring Past-Due Accounts Current
  If you've missed some payments on a particular account in the past, the best thing you can do is work with the creditor to resolve those debts ASAP. Bringing past-due accounts current prevents any further adverse impact on your credit score from that account and puts you in a position to make payments on time moving forward.

• Reduce Credit Card Balances
  Your credit utilization ratio is an important factor in your credit score and is based on the amount that you owe compared to the total credit available to you. Reducing that ratio by paying down credit card debts can help boost your credit score.

• Avoid Opening New Lines of Credit
  Applying for new lines of credit, whether through a credit card, auto loan, or other loans, can have a negative impact on your credit score. If possible, avoid opening new lines of credit until after your home-buying journey.

• Don't Close Old Accounts
  While you don't want to open new lines of credit, you also don't want to close old accounts in good standing. Closing those accounts can raise the credit utilization ratio we mentioned earlier, which can have an adverse effect on your credit score.

• Be Persistent About Improving Credit
  Turning a less-than-stellar credit score into an outstanding one takes time, but you'd be surprised by how much difference you can make in just a few months by taking the necessary steps. Be persistent, have a plan, and enjoy the results of your credit-boosting efforts when it's time to apply for a mortgage.

From the first step to closing day, our experienced team is here to help with every step of your real estate journey. Ready to start shopping for Jackson homes for sale or North Conway homes for sale? Contact us to buy and sell homes throughout the Mt. Washington Valley area and beyond.