Getting your credit ready for a mortgage: what to do and what to avoid
Small habits in the months before you apply can open up more options. Here is a practical checklist.
Start with your reports
You can get your credit reports for free from the three national credit bureaus through the official federal site, annualcreditreport.com. Review each one for accounts you do not recognize, wrong balances and old items that should have dropped off. Disputing real errors early gives them time to be corrected.
Habits that help
- Pay every bill on time. Payment history is one of the biggest factors in how lenders view credit.
- Keep credit card balances well below their limits.
- Keep older accounts open when you can, since the length of your history matters.
- Keep your savings and income documents organized so they are easy to verify.
Things to avoid before and during your loan
A new debt can change your monthly obligations and affect your options, even if you are already well along in the process.
- Do not open new credit cards or take out a car loan.
- Do not co-sign for someone else's loan.
- Do not move large amounts of money between accounts without keeping a record.
- Do not close old accounts without asking your loan originator first.
Not sure where you stand?
A licensed originator can look at your situation and explain which programs fit today and what would widen your options. There is no obligation to ask.
Questions about your situation?
Tell us about your loan and a licensed originator will follow up. There is no obligation to ask.