What’s escrow It’s a savings account #mortgage #budget #mortgagebroker #mortgagetips #mortgagerates As a first-time homebuyer, one of the most important steps is knowing your credit score. Your credit score plays a crucial role in determining the mortgage rate you’ll be offered, which directly affects your monthly payments and the total cost of your loan. Here’s why it matters and how to check it:

Why Your Credit Score Matters:
Loan Approval: Lenders use your credit score to assess how risky it is to lend to you. A higher score increases your chances of approval.
Interest Rates: A good credit score often results in a lower interest rate, which can save you thousands over the life of the loan.
Loan Options: A higher score might open up more mortgage options, including more competitive rates or programs for first-time buyers.
How to Check Your Credit Score:
Free Credit Reports: You can get a free credit report once a year from each of the three major credit bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com.
Credit Score Services: Many banks, credit card providers, or third-party services offer free access to your credit score.
Review Your Report: Check for any errors or inconsistencies on your credit report and dispute them if needed.
Tips to Improve Your Score:
Pay bills on time: Payment history is one of the biggest factors in your credit score.
Reduce credit card balances: Aim to keep your credit utilization ratio under 30%.
Avoid opening new accounts: Opening new lines of credit can negatively affect your score in the short term.
Knowing your credit score early in the process can help you plan and possibly improve it before applying for a mortgage.