Why Your Credit Score Matters
Your credit score is one of the most important factors lenders consider when approving your mortgage. It affects not only your ability to qualify for a loan but also your interest rate and monthly payment. A higher score can save you thousands of dollars over the life of your mortgage.
1. Check Your Credit Report for Errors
Start by reviewing your credit report from the three major bureaus — Equifax, Experian, and TransUnion. If you find errors such as incorrect balances or late payments, dispute them immediately. Even small mistakes can lower your score.
2. Pay Down Outstanding Balances
Your credit utilization ratio — the amount of credit you’re using compared to your limit — makes up a large portion of your score. Aim to keep balances below 30% of your credit limit on all cards.
3. Make All Payments on Time
Payment history is the single biggest factor in your credit score. Set reminders or automatic payments to avoid missed due dates. Even one late payment can have a lasting impact.
4. Avoid Opening New Accounts Before Applying
Opening new credit cards or loans before applying for a mortgage can temporarily lower your score. Focus on maintaining existing accounts and showing consistent, responsible use.
5. Don’t Close Old Accounts
Long-term credit history helps boost your score. Keeping older accounts open (even if unused) shows stability and responsible management of credit.
6. Build Positive Credit Habits Over Time
Improving your credit is a process. Consistent on-time payments, low balances, and patience are key to strengthening your profile before applying for a loan.
Final Thoughts
Your credit score plays a powerful role in determining your mortgage options and long-term affordability. By improving it ahead of time, you set yourself up for success.
At Boutique Realty, we work hand-in-hand with local lenders who can review your credit, provide personalized advice, and help you qualify for the best mortgage possible.
📞 Reach out to Boutique Realty today at 818-312-0831 or visit allensellsla.com to prepare for your home purchase with expert guidance and local insight.