How Can You Improve Your Credit to Get a Mortgage?

By Jason Baker

Jason Baker is the leading listing agent in the entire regional mls for residential and or total units sold, 8 years running. He is a tireless worker, and surrounds himself with the best admin and sales team in Montana...and the results speak for themselves.

Thinking about buying a home? Your credit score plays a HUGE role in getting approved for a mortgage. But here’s the good news—you don’t need perfect credit to qualify! With the right strategies, you can boost your score and unlock better loan options. That’s why today, I’m breaking down the top strategies to improve your credit and position yourself for homeownership!

So, how do you view your credit score in the first place? You can check your score through free apps like Credit Karma or Mint, Annual reports from Experian, Equifax, and TransUnion, or your bank or credit card provider’s free tracking services. Once you know your score, here are a few tips to improve it for a better mortgage:

1. What affects your score? First is your payment history–the worst thing for your credit score is late payments. Next, make sure you aren’t using too much of your available credit limit. Too many new credit inquiries can be a red flag, so make sure you’re being modest with your spending. Finally, a longer credit history shows lenders that you’re more reliable.

2. How to raise your credit score. If your credit score isn’t where you want it, work with your lender to create a plan. The easiest way to boost your credit score is to pay on time, every time. I recommend setting up automatic payments for credit cards, loans, and bills to make sure you never miss a payment. Next, use less than 30% of your available credit. If you need help reaching this limit, pay down your balances and consider a credit limit increase.

3. How to lower your DTI (debt-to-income ratio). By lowering your DTI, you’ll be able to qualify for a bigger mortgage. To do this, pay off small debts first. Next, avoid taking on new debt before applying for a mortgage. Your new car might have to hold off until you close on your new home.

Improving your credit doesn’t have to be overwhelming! If you’re preparing to buy a home and want to maximize your loan options, let’s chat. I offer a free credit strategy consultation—just call or email to schedule yours today!