07/28/2020
Your credit score is a key component to qualify you for a mortgage and it helps determine your mortgage interest rate. Buyers with credit scores of 740 or higher typically get the best mortgage rates, so improve your credit score as much as possible before applying for a mortgage.
Lenders also care about the relationship between your outstanding debt and income. The ideal debt-to-income (DTI) ratio, which is the percentage of your gross monthly income used to repay debt, is 43% or lower. Another helpful first-time buyer tip: Work on paying debt down before applying for a mortgage, if possible.