One of the most important steps to buying a house is ensuring you have your credit in order. Before you even start looking for homes, it is a good idea to know your credit history. If you have a good history of credit, maintain it, if you have a questionable history of credit, take the time to make it better before diving into the home buying process.
The first step is checking your credit. There are numerous web sites who claim to provide you with your credit report for free, but it is important that you receive a report from all three credit bureaus, Experian, TransUnion and Equifax. You can download a free copy of all three reports from www.annualcreditreport.com once a year. These reports will show you current lines of credit you have open, your payment history and debt balances.
Once you have these reports, review them for any inaccuracies. If your credit is in good shape, maintain it. Do not open new lines of credit. Do not make any large purchases, such as a car. Continue to pay all of your bills on time every month.
You can also take steps to increase your credit. If you noticed any inaccuracies on your credit reports, contact the credit bureaus to have them verify the information. They can work with the credit company or companies in question to make appropriate updates.
If you have any unpaid bills that are with collections, work to pay those off first. Pay off debts that are close to the credit limit. It will take time to increase your credit score, but it will pay off in the long run.