How do I improve my credit before buying a home?

Your credit score helps determine the interest rate and the loan programs you qualify for. A higher score can translate into a lower rate, which means a smaller monthly payment over the life of the loan.

Because even a small rate difference adds up, improving your score before you apply is worthwhile.

Paying every bill on time is the single most reliable way to build credit. Payment history is a large part of your score, so consistency matters most.

Keeping balances low on credit cards relative to your limits also helps. Paying down balances, not just moving them around, is what makes the difference.

Avoid opening new credit cards, taking on new loans, or closing old accounts in the months before you apply for a mortgage. These actions can dip your score or change your debt picture right when it matters.

It is also wise not to co-sign for anyone or make large purchases on credit while your mortgage is being processed.

Pull your credit reports and check them for errors, like accounts that are not yours or payments reported incorrectly. Disputing errors can give your score a legitimate boost.

A lender can also review your situation and tell you what would help most before you apply.

I connect you with a lender who can review your credit and give you a clear plan to improve it before you buy. We time your purchase so your score is in its best shape when you apply.

A little planning ahead can save you money every month for the life of the loan.