If you’re thinking about buying a home, your credit score will play a major role in what kind of mortgage you can qualify for—and how much that loan will cost you over time. The good news? You don’t need perfect credit to buy a home. And if your score isn’t where you want it to be yet, there are smart, proven steps you can take to boost it.
In this guide, we’ll walk through exactly how to improve your credit score for a mortgage, how long it might take, and how small changes can save you thousands when you’re ready to buy.
Why Credit Score Matters When Buying a Home
Your credit score directly impacts whether you qualify for a mortgage, what loan programs you’re eligible for, and what interest rate you’ll receive. Even a 20-point difference in your score can mean the difference between saving or spending thousands over the life of your loan.
Lenders typically use your FICO credit score, not the number you see in apps like Credit Karma. Here’s how the score ranges break down:
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580–619: May qualify for FHA loans, but higher rates and restrictions
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620–699: Conventional loan eligibility, but not ideal terms
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700–739: Strong borrower profile
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740+: Excellent credit; access to best mortgage rates
The higher your score, the more negotiating power and affordability you’ll have.
Step 1 – Know Where You Stand
Start by pulling your credit report from all three bureaus (Experian, Equifax, TransUnion) at www.annualcreditreport.com. You’re entitled to one free report per year from each.
Lenders look at these key factors:
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Payment history (35%): On-time payments are critical
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Credit utilization (30%): How much of your credit limits you’re using
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Length of credit history (15%): Older accounts help your score
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Credit mix (10%): Variety of loans and cards is beneficial
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New credit inquiries (10%): Too many recent applications can lower your score
Check for errors like incorrect late payments, duplicate accounts, or outdated balances. Dispute anything that looks inaccurate.
Step 2 – Pay Down High Credit Card Balances
Credit utilization is one of the fastest ways to influence your score. Aim to use less than 30% of your available credit—but under 10% is ideal.
Example: If your credit limit is $5,000, keep your balance under $1,500—preferably under $500 if possible. Pay your balance before your statement closing date to see improvements faster.
Even if you can’t pay everything off at once, reducing balances incrementally still helps.
Step 3 – Don’t Open or Close Accounts Too Soon
Thinking about applying for a new store card or loan? Wait.
Opening new credit lines triggers a hard inquiry, which can drop your score temporarily. It also lowers your average account age. Both are red flags when you’re preparing for a mortgage.
On the flip side, don’t close old accounts with a positive history. These help your credit length and payment history—two key factors in your FICO score.
Step 4 – Make Every Payment On Time
Payment history accounts for 35% of your credit score—the single most important factor.
One missed or late payment can cause a major drop in your score and stay on your report for years. Set up autopay or calendar reminders to avoid missing any due dates while preparing for your loan.
If you’re behind on a current bill, bring it current and stay consistent moving forward. Recovery takes time, but it starts with the next on-time payment.
Step 5 – Keep an Eye on Collections and Errors
Unpaid collections—especially medical or utility bills—can hurt your score, even if they’re small.
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Pay off or negotiate old debts if they’re still reporting
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Dispute items you don’t recognize with all three bureaus
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Note that some newer scoring models ignore medical collections under $500—but not all lenders use them
You can also request debt validation letters from collection agencies to ensure accuracy.
Step 6 – Add Positive Credit Tradelines If Needed
If your credit history is thin or you’re rebuilding after past credit issues, you can take steps to add positive history.
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Become an authorized user on a trusted family member’s credit card
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Use Experian Boost to report utility and streaming payments
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Open a secured credit card if you don’t qualify for unsecured credit yet
These actions won’t immediately rocket your score, but they help build a stronger foundation over time.
How Long It Takes to Improve a Credit Score for a Mortgage
Some credit improvements happen quickly—others take time. Here’s a rough timeline based on what you’re fixing:
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30–60 days: Lower utilization, correct errors, report positive tradelines
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60–90 days: Settle small collections, consistent on-time payments
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3–6+ months: Rebuilding from multiple late payments or high debt loads
Lenders typically use your middle credit score (the middle number from all three bureaus). The sooner you start improving your score, the more mortgage-ready you’ll be when the time comes.
How Lockstep Realty Helps First-Time Buyers Prepare
At Lockstep Realty, brokered by eXp Realty, we know that credit preparation is part of the buying journey. We help buyers at every stage—whether you’re ready now or working toward your first home next year.
Here’s how we support you:
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Partner lenders who provide free credit consultations and score plans
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Transparent conversations about mortgage options for every credit tier
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Personalized buyer consultations with a focus on budgeting, timelines, and what to expect
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Tools and resources to calculate payments based on real-time interest rates and credit brackets
We don’t just help you find a home—we help you build the foundation to buy it confidently.
FAQs – Improve Credit Score for Mortgage
What credit score do I need to buy a house?
Most conventional loans require a score of 620+, FHA loans go as low as 580, and VA loans vary by lender. A score over 740 typically gets you the best rates.
Will checking my credit hurt my score?
No—pulling your own credit is a soft inquiry and does not affect your score. Only lender “hard pulls” have a small impact.
How much can I save with a higher credit score?
Even a 40-point increase can reduce your mortgage rate by 0.25%–0.5%, potentially saving you tens of thousands over the life of the loan.
Can I get pre-approved with a low credit score?
Yes—but you may face higher interest rates and stricter loan terms. Working to improve your score can increase affordability and options.
How far in advance should I start improving my score?
Ideally, start at least 3–6 months before you want to buy. Some improvements happen quickly, but others take time to reflect on your report.
Final Thoughts – Control What You Can, Then Move Forward with Confidence
Your credit score doesn’t define you—but it does impact your path to homeownership. The good news? It’s not fixed. With a little time, some strategic action, and the right guidance, you can take control of your credit and step into your next chapter confidently.
When you’re ready to buy, Lockstep Realty is here to walk with you—every step of the way.
