Get ready to qualify with confidence: a quick guide for home buyers and investors
When you’re preparing to apply for a mortgage, whether you’re a first-time buyer, an experienced investor, or working with home lenders, your Credit Score is one of the most important pieces of the puzzle. Lenders use it to assess how you’ve managed debt and whether you’re likely to repay a home loan reliably.
The better your credit score, the stronger your position with mortgage lenders, and the more favorable your terms (interest rate, down payment, loan size) tend to be. NCHFA+1 . Here’s how you can take quick-action steps to improve your credit score before applying for a mortgage.
Why your credit score matters for a home loan
When you approach a home lender about a mortgage, whether for your primary residence, an investment property, or perhaps a duplex you’ll develop, you want to present yourself as the lowest-risk borrower possible.
- A higher credit score improves your chances of approval and often means better interest rates and lower costs over time. NCHFA+1
- Mortgage-type guidelines exist: for example, many conventional loan programs expect a minimum score around 620; for jumbo loans, maybe 700 or more. (These are general examples.)
- Even a modest improvement in score can translate into large savings over the life of a mortgage, because rate differences multiply over 15-30 years.
Because of that, focusing on how to improve your Credit score before you lock in with that home lender is wise.
Quick checklist: Steps you can take now
Here are seven actionable steps you can implement soon, to improve your Credit Score ahead of a mortgage application.
1. Check your credit reports and scores
Start by pulling your credit reports from the three major bureaus Equifax, Experian and TransUnion. Use a trusted website such as AnnualCreditReport.com. Experian+2Los Informes Hipotecarios+2
Review carefully for:
- Mistakes or accounts that don’t belong to you
- Late payments wrongly reported
- Closed accounts still marked as open
If you find errors, dispute them immediately. Correcting mistakes can lead to relatively fast improvements. Los Informes Hipotecarios+1
2. Pay all bills on time
Your payment history is the largest factor in most Credit-Score models (around 35%). Experian+1
What you can do:
- Set up autopay or alerts so nothing slips past the due date
- For any delinquent accounts, bring them current as soon as possible
- Once you’re on time for several months, you’ll start proving reliability
3. Reduce credit card balances (improve utilization)
Another key factor: how much you owe compared to your available credit (often called “credit utilization”). Lenders like to see this ratio low. wellsfargo.com+1
Best practice: aim to keep your utilization under ~30%, and ideally closer to 10-15% if possible. Los Informes Hipotecarios+1
Ways to do it:
- Pay down high-balance cards first
- Try making payments mid-cycle to reduce the balance when the statement posts
- Avoid transferring large balances to one card if it spikes utilization
4. Ask for a credit limit increase (if appropriate)
If you’ve been making your payments on time and your account is in good standing, you can ask a card issuer to raise your limit. Increased available credit can reduce your utilization ratio (assuming you don’t increase spending). wellsfargo.com+1
Caveat: Be sure the issuer doesn’t do a hard inquiry (which can temporarily lower your score). Ask ahead if the increase will be “soft.”
5. Avoid opening new accounts or closing old ones
Opening new credit lines causes a “hard inquiry,” which can dip your score slightly. Also, the length of credit history matters, closing old accounts can shorten your average account age, which may hurt your score. citizensbank.com+1
Before your mortgage application:
- Resist applying for new cards or loans
- Keep long-standing accounts open even if you’re not actively using them
- Remember: credit mix and account age also factor in (10-15% combined) rocketmortgage.com
6. Become an authorized user (if applicable)
If you’re a first-time buyer or you have a short credit history, one strategy is to ask a trusted relative with a strong credit history to add you as an authorized user on a credit card they maintain responsibly.
If done right, this can help build payment history and length of history quickly. NerdWallet
Important: The primary cardholder must have a strong record (on-time payments, low balances). You also want to confirm that the issuer reports authorized-user activity to the credit bureaus.
7. Consider credit counseling (or a debt-reduction plan)
If you have multiple balances, collections, or past delinquencies, working with a non-profit credit counselor can help you build a plan to manage debt, negotiate rates, and get back on track. rocketmortgage.com\ .This isn’t an overnight fix, but it shows lenders you’re proactively improving your credit profile ahead of applying for a mortgage.
Sample minimum credit scores by loan type
Here’s a reference table many home lenders use:
| Type of Loan | Typical Minimum Credit Score* |
| Conventional | ~620 |
| Jumbo | ~700 |
| FHA | ~580 (or ~500 with 10% down) |
| VA | ~620 (though the VA itself doesn’t set a firm minimum) These are approximate guidelines; actual requirements vary by lender, by investor, by borrower’s full profile (income, debt ratio, etc.). It’s best to aim for the highest score possible before applying. |
Why higher scores benefit borrowers
- Better scores = stronger approval chances from home lenders
- Lower interest rates = significant lifetime savings on your mortgage
- Higher credit scores offer more loan options (investment properties, duplexes, etc.)
For instance, even a small interest-rate improvement can translate into thousands saved over 30 years. U.S. Bank
Timeline & strategy: How fast can you improve your score?
While major credit history issues (like past bankruptcies or foreclosures) take time to heal, many of the steps above can produce visible results in 30-90 days, particularly paying down balances and correcting errors. Los Informes Hipotecarios+1
Suggested strategy:
- 90+ days out: Pull reports, correct errors, reduce high balances
- 60 days out: Avoid new credit, request limit increases if safe, maintain on-time payments
- 30 days out: Avoid major spending/credit changes, ensure all files and documentation are ready for your home lender
Next steps if you’re ready to move toward a mortgage
- Maintain the credit-best practices above consistently
- When your score is in a solid position, shop around for home lenders — compare rates, fees, and loan types
- Prepare your documentation: income, tax returns, assets, debts
- Choose the right loan product (for an owner-occupant, a first-time buyer program, or an investment property)
- Submit your application and monitor progress through underwriting
- Stay disciplined: don’t take on new debt, don’t close old accounts, don’t make large purchases on credit until after closing
Final thoughts
Whether you’re buying your first home or investing in a property, your credit score is a pivotal part of the mortgage equation. The good news: many of the most effective steps to improve your score are actionable, often free, and entirely within your control.
By checking your credit report, paying bills on time, managing utilization, avoiding major changes, and building a clean profile, you’ll position yourself strongly with home lenders and access better mortgage terms for your goal.
If you’d like a tailored plan (with target credit score benchmarks, a “what-to-do next” schedule, or help matching your credit profile to specific loan programs), I’d be happy to build that with you.
At First Nation Financial, we don’t just push paperwork, we partner with you, guide you step by step, and help you understand exactly what you need to do to qualify. We believe in second chances, creative solutions, and turning “not yet” into “let’s do this.”
So if you’ve been waiting until everything’s “perfect,” here’s your sign: it doesn’t have to be. What you need is someone who understands where you’re coming from and knows how to get you where you want to go.
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