1. Check your credit report and score
The first step is to check your credit report and score. You’re entitled to a free copy of your credit report from each of the two major credit bureaus (Equifax, and TransUnion) once every 12 months.
Your credit score is a number that ranges from 300 to 850 and reflects the risk you pose to lenders. The higher your score, the lower the risk. You can get your credit score for free from many sources.
2. Dispute any errors on your credit report
If you find any errors on your credit report, dispute them with the credit bureau. You can do this online, and it’s important to do this as soon as possible because disputed items can stay on your report for up to 90 days.
3. Find a cosigner
If you can’t get approved for a mortgage on your own, you may be able to get approved if you find a cosigner. A cosigner is someone who agrees to sign the loan with you and is responsible for making the payments if you can’t.
4. Get pre-approved for a mortgage
Before you start shopping for a home, it’s a good idea to get pre-approved for a mortgage. This way you’ll know how much you can afford to spend and you’ll have an idea of the interest rate you’ll be paying.
5. Shop around for the best mortgage rate
Mortgage interest rates can vary significantly from one lender to the next . It’s important to shop around and compare rates before you decide on a lender.