Credit Not Perfect Yet? Your Game Plan Before You Buy

Know which score matters

The score in your credit app is probably not the score a mortgage lender sees.

Free apps

Credit Karma & similar

Usually show a VantageScore 3.0. Great for tracking whether you're trending up or down.

Mortgage lenders

Scores from all 3 bureaus

Most use Classic FICO versions built for mortgages. Some loans can now use VantageScore 4.0.

The two can differ, sometimes by a lot. To see the FICO versions used for mortgages, myFICO.com offers them on a paid plan. The most accurate number comes from a mortgage credit check.

What your score can open up

640+

Grant program options may be available, along with assistance and FHA programs

600–639

Down payment assistance programs may be available

580–599

FHA financing may be available

500–579

FHA financing may be possible with a larger down payment

These are starting points, not approvals. Every option also depends on your income, debts, savings and full credit history, and programs can change.

Score under 640? Start here.

Pull your free credit reports from all three bureaus: Equifax, Experian and TransUnion. The official site is free and checking your own report does not hurt your score.

Get my free reports at AnnualCreditReport.com

Heads up: these reports list your accounts and history but don't include a score. Watch out for look-alike sites that ask for payment.

What to look for on your report

Accounts you don't recognize

Wrong balances or credit limits

Late payments you believe are reported in error

The same debt listed more than once

Very old negative items that may be past their reporting period

Incorrect personal info: name, address or employer

Found an error? Each credit bureau has a free dispute process on its website. If you're planning to buy soon, talk with me first, since open disputes can slow down a mortgage application.

Late payments in the past 12 months?

A late payment on a mortgage or an installment loan (car, student or personal loan) in the last 12 months is usually a roadblock for now. In most cases, you'll need 12 months of on-time payments from the date of that late payment before buying.

Was it caused by something outside your control?

Lenders sometimes consider a documented, one-time hardship, such as:

• Serious illness or medical emergency

• Death of a family member

• Job loss or layoff

• Natural disaster

• An error by the lender or loan servicer

• Military deployment

Exceptions are rare, require paperwork and are never guaranteed. If this sounds like you, reach out and we'll review it together.

Pause before you pay

It sounds backwards, but some well-meaning moves can lower a score or create problems during the mortgage process. Before you do any of these, check first:

Paying off or settling old collections

Closing credit card accounts

Opening new cards or loans

Co-signing for someone else

Track your progress month by month

On-time payments build your score over time. Here's how to watch it move:

1Set your starting point. Write down today's score from a free app and save copies of your three reports.
2Turn on autopay. Set every bill to pay at least the minimum automatically, so nothing slips.
3Check Credit Karma monthly. See what's reporting and which way your score is trending.
4Before reaching out, pull all three free reports again. Make sure your on-time payments are showing and any errors are gone, including on Experian, which Credit Karma doesn't show.
5Mark your calendar. If you had a recent late payment, note the date 12 months later.
6Reach out when you're close. When your app score nears your goal, contact me for a mortgage credit review.

The rules: get your score up and keep it there

Pay every bill on time, every time. One payment 30+ days late can undo months of progress.

Keep card balances under 30% of the limit. Under 10% is even better.

Pay cards down before the statement date. That's usually the balance that gets reported.

Keep your oldest cards open. Even if you rarely use them.

Don't open new credit. Not while you're preparing to buy, unless you truly need it.

Don't co-sign for anyone. Their payments become your risk.

Never ignore a collection. But ask me or your credit specialist before paying it.

No big purchases on credit. Hold off on cars and furniture until after closing.

Choose your next step

Need to improve your credit?

Work with a credit specialist

I'm a mortgage professional, not a credit repair company. For hands-on credit help, I refer buyers to My Credit Guy. When you're ready, they'll connect you back with me to talk about buying.

Connect with My Credit Guy

My Credit Guy is an independent company. I don't receive any compensation for this referral, and their services and results are their own.

Ready to talk mortgage?