How to Improve Your Credit Score Before Applying for a Mortgage

Your credit score plays a significant role in your mortgage journey, as it can impact your interest rate, loan approval, and even the amount you can borrow. The good news? With a few strategic moves, you can give your score a solid boost before you apply.

Here’s how to get started:

1. Check Your Credit Reports

Start by pulling your free credit reports from the three major bureaus. Look for errors, such as incorrect balances or accounts that aren’t yours, and dispute anything suspicious.

2. Pay Down Credit Card Balances

Keep your credit utilization (how much of your available credit you’re using) below 30%, ideally below 10%. Paying down high balances is one of the fastest ways to raise your score.

3. Make All Payments On Time

On-time payments are crucial. Even one missed payment can hurt your score significantly. Set up reminders or auto-pay to stay on track.

4. Avoid Opening New Credit Accounts

Each new account creates a "hard inquiry" on your credit report and lowers your average account age. Both can temporarily lower your score, so hold off until after you’ve closed on your home.

5. Keep Old Accounts Open

The longer your credit history, the better. Even if you’re not using that old store card, keep it open and in good standing.

Improving your credit doesn’t happen overnight, but even a small increase can make a big difference in your mortgage terms. If you're not sure where to start, I can help review your situation and guide you on the path to homeownership, credit tips, and all.