When it comes to buying your first home, there are a number of different steps to the process. One of the most important steps is to build good credit. Doing so will allow you the flexibility to put more money down when you close on your home. In addition, this could also lower your monthly payment.

Credit breaks down into a few main categories and each one will be discussed in detail below:

• What is a good credit score

• How do you find and establish good credit

• How to repair bad credit

• How to keep good credit

It is important to build good credit before you buy a home. This will result in your credit score. The higher your score, the better your chances of getting approved. The article, How Your Credit Score Affects Your Mortgage Rate, from Bankrate goes into detail about good scores. The article also provides a chart of the APR, monthly payment, as well as the interest that you will pay. “A low credit score can make it less likely that you would qualify for the most affordable rates and could even lead to rejection of your mortgage application,” says a spokesman for the National Foundation for Credit Counseling.

The next point to think about is how to find and establish good credit. There are a number of ways you can do so. One good way might be to get a credit card. However, if you do not feel comfortable, or are unable to do so, you can check out some other great ideas through this NerdWallet article, How To Build Credit, which goes into elaborate detail in regards to building good credit as well as good credit habits.

It might come as a surprise if a home buyer discovers that their credit could be out of shape. It is very important to repair your credit sooner rather than later. Not doing so right away will likely delay the closing on a property. It furthermore may delay getting a mortgage. The article, Avoid These Credit Repair Mistakes, from the Investopedia breaks down common mistakes that can cause your credit to fail.

There are a number of ways that you can improve your credit. The easiest way to get started is to check your credit often by obtaining a report every four months. It is also extremely important to check your report for mistakes. Not doing so could delay approval for a credit card. Be sure to report any mistakes in your report. When doing so, be sure to provide identification. Be sure to pay your bills on time or within 30 days. If a payment is not made after that period, it gets reported to the credit card bureaus, which can affect your credit. The article, How To Fix Your Credit, from Lexington Law goes into further detail and lists several other tips.

It is imperative to focus on your credit the minute you begin to think about owning your first home. Having the flexibility to be able to put a solid down payment will benefit you in the long run. This could also help you pay off your home slightly faster. Additionally, this might allow you to put money towards any necessary home improvements.