r lack of knowledge of the mortgage process or your available options. This is where doing your own homework can benefit you greatly.

- The more reserves you have, the better. Reserves are liquid assets that lenders want you to have available. Some lenders may require that you have an amount equal to three months' mortga

- Check your credit file for discrepancies or inaccuracies. Regardless of the condition of your credit, you want to present the best possible financial picture of yourself as possible. This means knowing what's in your file ahead of time and fixing any minor irregularities that may be found. Credit reporting errors are a common occurrence. Correcting some of them, such as a bad account that doesn't belong to you, can improve your score and possibly lower the cost of your loan.

- Repay loans in installments. Developing a substantial credit history in this manner is more valuable to your credit score than paying your balances in one lump sum or several large payments.

- Don't attempt to open any new credit accounts from three- to six months prior to applying for a mortgage. Lenders can view such new credit -- or even attempts at new credit -- as potential red flags. They also add to your overall debt, lowering you credit score and making it more difficult to qualify for a home loan.

- Know that the cost of your mortgage will be higher for one or two reasons. First, lenders price their loans according to risk, and as a borrower's credit score and financial strength decrease loan rates and fees increase (the first eight tips will help you combat this). Second, lenders prey upon your lack of knowledge of the mortgage process or your available options. This is where doing your own homework can benefit you greatly.

- The more reserves you have, the better. Reserves are liquid assets that lenders want you to have available. Some lenders may require that you have an amount equal to three months' mortgag

n occurrence. Correcting some of them, such as a bad account that doesn't belong to you, can improve your score and possibly lower the cost of your loan.

- Repay loans in installments. Developing a substantial credit history in this manner is more valuable to your credit score than paying your balances in one lump sum or several large payments.

- Don't attempt to open any new credit accounts from three- to six months prior to applying for a mortgage. Lenders can view such new credit -- or even attempts at new credit -- as potential red flags. They also add to your overall debt, lowering you credit score and making it more difficult to qualify for a home loan.

- Know that the cost of your mortgage will be higher for one or two reasons. First, lenders price their loans according to risk, and as a borrower's credit score and financial strength decrease loan rates and fees increase (the first eight tips will help you combat this). Second, lenders prey upon your lack of knowledge of the mortgage process or your available options. This is where doing your own homework can benefit you greatly.

- The more reserves you have, the better. Reserves are liquid assets that lenders want you to have available. Some lenders may require that you have an amount equal to three months' mortga

several large payments.

- Don't attempt to open any new credit accounts from three- to six months prior to applying for a mortgage. Lenders can view such new credit -- or even attempts at new credit -- as potential red flags. They also add to your overall debt, lowering you credit score and making it more difficult to qualify for a home loan.

- Know that the cost of your mortgage will be higher for one or two reasons. First, lenders price their loans according to risk, and as a borrower's credit score and financial strength decrease loan rates and fees increase (the first eight tips will help you combat this). Second, lenders prey upon your lack of knowledge of the mortgage process or your available options. This is where doing your own homework can benefit you greatly.

- The more reserves you have, the better. Reserves are liquid assets that lenders want you to have available. Some lenders may require that you have an amount equal to three months' mortga

ify for a home loan.

- Know that the cost of your mortgage will be higher for one or two reasons. First, lenders price their loans according to risk, and as a borrower's credit score and financial strength decrease loan rates and fees increase (the first eight tips will help you combat this). Second, lenders prey upon your lack of knowledge of the mortgage process or your available options. This is where doing your own homework can benefit you greatly.

- The more reserves you have, the better. Reserves are liquid assets that lenders want you to have available. Some lenders may require that you have an amount equal to three months' mortga

r lack of knowledge of the mortgage process or your available options. This is where doing your own homework can benefit you greatly.

- The more reserves you have, the better. Reserves are liquid assets that lenders want you to have available. Some lenders may require that you have an amount equal to three months' mortgage payments on deposit. The more you have to draw on if necessary, the better position you'll be in to possibly negotiate more favorable terms.

- Give the lender letters of explanation about areas of concern in your application or credit file. If there were extenuating circumstances that you could show the lender are now past, it could be just the thing to help the underwriter to decide in your favor.

Whether you have poor credit from late payments or a previous bankruptcy. You can improve your credit score and help your chances at getting a lower interest rate on your next mortgage loan.