Mortgage Basics

Credit

Your credit history is a record of how you’ve used and repaid credit over time. Lenders look at your credit to help determine your interest rate, loan approval, and overall mortgage options.

Good credit doesn’t mean perfect—it means consistent, reliable, and improving.

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Credit Graphic

A credit report is a summary of your financial habits, including:

  • Your open credit accounts
  • Payment history
  • Amounts owed
  • Public records (like bankruptcies or judgments)
  • Recent applications for credit

This information is collected by the major credit bureaus: Equifax, Experian, and TransUnion.

Yes. You can view your credit report once every 12 months for free at:

👉 AnnualCreditReport.com

You can also request reports after a credit denial or dispute. Reviewing your report regularly helps ensure accuracy.

Your score is based on several key factors:

  • Payment History: Paying on time is the biggest factor in your score.
  • Credit Usage: Lower balances relative to your limits help boost your score.
  • Length of Credit History: Older accounts help build depth.
  • Credit Inquiries: Too many recent applications can temporarily lower your score.
  • Types of Credit: A mix of accounts (credit cards, auto loans, etc.) can help. 

Improving credit takes small, consistent steps:

  • Pay bills on time
  • Reduce credit card balances
  • Avoid opening too many new accounts
  • Correct errors on your report
  • Keep older accounts open when possible

Even small improvements can make a big difference in mortgage eligibility and interest rates.

Mortgage lenders use your credit to determine:

  • What loan programs you qualify for
  • Your interest rate
  • Your required down payment
  • Whether mortgage insurance is needed

A stronger score can mean lower monthly payments and more loan options.

That’s completely normal. Many homebuyers start the process with less-than-perfect credit.

You may still qualify for:

  • FHA loans, which allow lower scores
  • USDA or VA loans, depending on eligibility
  • Programs designed for first-time and returning buyers

I can walk you through your report, explain the impact, and outline simple steps to strengthen your score while we plan your homebuying timeline.

I can help you understand:

  • What's helping your score
  • What may be hurting it
  • The quickest ways to improve
  • Which mortgage programs fit your current credit profile

You don’t have to guess—I'll break it down for you clearly and simply.