
Steps to Improve Your Credit Before Applying for a Mortgage
Buying a home is one of the biggest financial decisions you’ll make—and your credit score plays a major role in your mortgage approval and interest rate. Before you apply, taking steps to improve your credit can make a real difference in your home loan options. Here are three essential tips to help boost your score and strengthen your mortgage application:
1. Pay All Your Bills on Time
Your payment history is one of the biggest factors affecting your credit score. Even one late payment can have a negative impact. Set reminders, use auto-pay, or create a simple budget system to ensure every bill is paid on time—especially credit cards, auto loans, and student loans. Consistent on-time payments signal to lenders that you’re a responsible borrower.
2. Keep Credit Card Balances Below 50% of Your Limit
Another important factor in your credit score is your credit utilization ratio—how much of your available credit you’re using. Ideally, you should aim to use less than 50% of your credit limit on each revolving account. For example, if you have a card with a $5,000 limit, try to keep the balance below $2,500. Lower balances can boost your score and show lenders you’re managing your credit wisely.
3. Avoid Opening or Closing Credit Accounts
It might seem smart to close unused credit cards or open a new one for a quick credit boost, but doing either can actually hurt your score. Opening new debt can trigger a hard inquiry and increase your overall debt load, while closing an account reduces your total available credit, increasing your utilization ratio. Keep your accounts stable while you’re preparing for a mortgage.
Bottom Line:
Taking these simple steps can improve your credit health and potentially qualify you for better mortgage rates. At Trust Mortgage, as your local mortgage broker we’re here to guide you through every step of the home buying process—starting with your credit. If you’re not sure where you stand or want help reviewing your credit before applying, reach out today for a free consultation.
Let’s get you one step closer to homeownership—with confidence.