Credit Health and Mortgages: What to Know Before You Apply

Credit Matters More Than You Think

When preparing to buy a home, your credit score becomes more than just a number—it’s a key part of your financial identity. While it’s not the only factor in qualifying for a mortgage, it plays a major role in determining what loan products might be available to you.

Strong credit can open doors, while lower scores may limit your options or require extra documentation. The good news? There are steps you can take now to understand and improve your credit health, no matter where you’re starting.

Start With Your Credit Report

Your first step should be to check your credit reports from the three major credit bureaus: Experian, Equifax, and TransUnion. You’re entitled to one free report from each bureau per year at AnnualCreditReport.com.

Review the reports carefully for errors, outdated information, or accounts that don’t belong to you. Disputing inaccuracies is easier when caught early—and doing so can give your score a quick boost.

Practical Ways to Improve Your Score

The most important thing you can do is pay all your bills on time. Payment history makes up a large portion of your credit score. If you have any accounts past due, work on bringing them current.

Next, tackle your credit utilization—the amount of revolving credit you’re using compared to your total available limit. Ideally, this should stay below 30%. Paying down credit card balances is one of the fastest ways to make a positive impact.

Avoid opening new lines of credit or taking on large purchases in the months leading up to your mortgage application. New accounts and credit inquiries can lower your score temporarily and raise questions for underwriters.

Consistency Over Perfection

You don’t need a perfect credit score to qualify for a mortgage. Lenders look at the full picture, including income, debt, and savings. That said, improving your credit where you can gives you more flexibility and confidence during the process.

If you’re recovering from past credit challenges, know that time and consistency can work in your favor. The older a negative mark is, the less impact it has over time—especially when surrounded by strong, current payment history.

Get Expert Support

Not sure where to start? A mortgage professional can review your credit with you and help outline a personalized path to readiness. Sometimes even small tweaks—like adjusting credit limits or correcting reporting errors—can make a big difference.

Taking the time now to understand your credit and strengthen your profile can help ensure smoother approval and better options when you’re ready to move forward.