Before applying for a home loan, it's crucial to check your credit score and history, as lenders scrutinize these details closely. Sally Tindall, Canstar's data insights director, emphasizes that while credit scores provide a quick overview, lenders dive deeper into credit histories to assess borrowing risks. Factors like late payments, defaults, and bankruptcy can significantly lower your score, making it vital to maintain a clean credit record. Andrew Rennie, a mortgage broker, warns that even minor late payments can have lasting effects, as credit reports reflect conduct over the past 24 months. Multiple loan applications can also signal financial distress to lenders, potentially impacting your report negatively. However, rolling over a pre-approval typically doesn't harm your score. To improve your credit health, regularly check your credit report, pay bills on time, and limit loan applications. By being proactive, you can enhance your chances of securing a favorable home loan.
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