Step 2: Check and Strengthen Your Credit

Your credit score sets which programs you qualify for and the rate you pay. Check it early and fix what you can.

Your credit score does two jobs in a mortgage. It decides which loan programs you can use, and it moves your interest rate. On a conventional loan, the difference between a 680 and a 760 score can be a meaningful amount every month for the life of the loan, because of loan-level price adjustments.

What score do you need?

These are common lender minimums, not guarantees. Each lender sets its own rules on top of the program.

Read your credit report

Mortgage lenders pull reports from all three bureaus and usually use the middle score. Before you apply, get your free reports and look for:

• Accounts you don't recognize
• Late payments that were actually on time
• Paid-off debts still showing a balance
• Collections that may be eligible for removal or a pay-for-delete agreement

Dispute errors with the bureau directly. Corrections can take 30 days or more, so start early.

Quick ways to raise a score

• Lower card balances. Utilization (balance divided by limit) is a large part of the score. Getting each card under 30%, ideally under 10%, can help within one statement cycle.
• Don't open new accounts or finance furniture before closing. A hard inquiry and a new payment can change your approval.
• Keep old accounts open. Account age helps.
• Pay everything on time. One new late payment during the loan process can stop it.

Shopping for a mortgage won't wreck your score

Credit scoring treats multiple mortgage inquiries within a short window (14 to 45 days, depending on the model) as one. Comparing lenders is expected.

Next: save for your down payment and closing costs.

Your next move, by loan program

• Conventional: Conventional loans generally need a 620 score, and pricing improves at each 20-point band up to about 780. Price my credit score
• FHA: FHA allows 3.5% down from a 580 score, and 10% down from 500 to 579. Rates don't move as much with credit as conventional rates do. Check FHA with my score
• VA: VA sets no official minimum score, but most lenders look for 580 to 620. VA pricing is less sensitive to credit than conventional. Check VA with my score
• USDA: USDA automated approval usually works from a 640 score. Lower scores can still qualify with manual underwriting. Check USDA with my score
• Jumbo: Jumbo lenders commonly want 680 to 700 or higher, and the best pricing starts around 740. Check jumbo with my score
• Investor: DSCR lenders typically start around 620 to 660, and the score has a large effect on rate and the required down payment. See investor programs