How to Improve Your Credit Before Buying a Home
Published by Speed Credit
Table of Contents
- Why Credit Matters When Buying a Home
- What Credit Score Do You Need to Buy a House?
- Quick Wins to Raise Your Score Before Applying
- Mistakes That Can Kill Your Mortgage Approval
- When to Start Fixing Your Credit Before House Hunting
- Next Up: Credit Tips for First-Time Car Buyers
Why Credit Matters When Buying a Home
Your credit score plays a massive role in the kind of mortgage you qualify for—and how much interest you’ll pay over the life of the loan. A score boost of just 50 points could save you **tens of thousands** in interest. It also impacts:
- Whether you’re approved at all
- Your down payment requirements
- Your PMI (private mortgage insurance) costs
If you want better loan terms, **fixing your credit before you apply is the key.**
What Credit Score Do You Need to Buy a House?
| Loan Type | Minimum Score | Ideal Score Range |
|---|---|---|
| FHA Loan | 580 (with 3.5% down) | 620+ |
| Conventional Loan | 620 | 680–740+ |
| VA Loan | 580–620 | 660+ |
| Jumbo Loan | 700+ | 720+ |
The higher your score, the lower your interest rate and monthly payment. Every point counts.
Quick Wins to Raise Your Score Before Applying
These strategies can boost your score fast (within 30–60 days):
- Pay down credit card balances to under 10% of your limit
- Dispute errors on your credit report
- Ask for credit limit increases (without new inquiries)
- Use Experian Boost to add positive payment history
- Become an authorized user on a family member’s seasoned account
And of course, **never miss a payment** during the months leading up to a mortgage application.
Mistakes That Can Kill Your Mortgage Approval
Even one slip-up can derail your home loan. Avoid these at all costs:
- Opening new credit cards before or during mortgage processing
- Co-signing for someone else’s loan
- Making large purchases (like furniture or cars) before closing
- Changing jobs or income sources without a heads-up
Mortgage lenders want stability. Keep your financial picture consistent until the keys are in your hand.
When to Start Fixing Your Credit Before House Hunting
Start improving your credit 3 to 6 months before applying for a mortgage. Why?
- It gives time for updates to reflect on your reports
- You can catch and fix errors without pressure
- You’ll be ready to lock in a better rate when the market shifts
Even if you’re “not quite ready,” now’s the time to prepare.
Next Up: Credit Tips for First-Time Car Buyers
Buying a car soon too? We’ve got you. Next, we’ll break down how to get approved, lower your rate, and skip the traps in Credit Tips for First-Time Car Buyers.
