Master Your Credit Score Before Your Next Mortgage
About this video
Ready to buy your dream home but need a better credit score? In this video, we’re revealing 7 powerful tips to raise your credit score quickly and effectively! Whether you're a first-time homebuyer or looking to level up your financial game, these proven strategies will help you unlock better mortgage rates and get you closer to your new home. 🏡✨ Don’t miss out—hit that play button and start boosting your credit score today!
Key takeaways
- Jason talks with Jeff, a mortgage lender with about 25 years of experience, about seven ways to raise your credit score before buying. 1: pay on time. Payment history is about 35% of your score; late payments generally reach your report once they're 30 days past due, though late fees start sooner.
- Lenders pull all three bureaus (TransUnion, Equifax and Experian) and usually qualify you on the middle score.
- 2: keep credit card balances under about 30% of their limits; scores dip above 50% and more above 80%. 3: avoid opening new credit while you're getting approved, and don't finance furniture before closing.
- 4: pay down debt strategically. Conventional loans can allow total debt up to about 50% of gross monthly income and FHA up to about 57%, though about 43% is a comfortable target. A lender's rapid rescore can update scores in days after you pay down specific balances.
- 5: check your reports for free at AnnualCreditReport.com and dispute errors in writing; bureaus generally must verify or remove disputed items within 30 days. Free monitoring apps can differ from mortgage scores.
- 6: become an authorized user on a responsible person's longstanding card. 7: keep old accounts open, since closing them can raise your utilization and lower your score. Borrowers without a score may still qualify through manual underwriting or bank-statement loans.
Questions this video answers
What credit score do I need to buy a house?
Many FHA programs look for at least about 620, but requirements vary, and some borrowers without a score can qualify through manual underwriting. Talk with a lender about your situation.
How can I raise my credit score quickly before applying for a mortgage?
Pay credit card balances below about 30% of their limits, avoid new credit, dispute errors, and ask your lender about a rapid rescore after you pay down specific accounts.
Should I close old credit cards before buying a house?
Usually not. Closing old accounts reduces your available credit and can raise your utilization, which may lower your score. Pay them off and keep them open.
Read more: Buy a home · Pay cash for your next home
Notes written by Huerkamp Home Group from this video. Figures are as stated in the video on March 12, 2025; check the current numbers in our market reports.
