How to Improve Your Credit Score Before Buying a Home

By Dana Monson

My team and I are expert real estate agents with Keller Williams in Marysville, WA and serve the greater Puget Sound area, providing home-buyers and sellers with professional, responsive, and attentive real estate services since 2004. Want an agent who'll really listen to what you want in a home? Need an agent who knows how to effectively market your home so it sells? Give us a call! We are eager to help and would love to talk to you.

Feeling unsure about your credit score can make the home-buying process seem daunting, but what if you could approach it with confidence instead of worry? I talked with my dear friend, Chelsea Wagner, who is passionate about empowering people to improve their credit and achieve their homeownership goals. Here’s what she shared to help you effectively improve your credit score before purchasing a home:

Credit repair should be your first step. Many potential buyers hesitate to approach a lender because they’re concerned about their credit score or existing debts. However, trying to fix your credit without professional guidance can be counterproductive. It’s essential to talk with a trusted advisor who can provide a clear roadmap for improving your credit before you take any steps on your own.

Professional credit assessment is important. Chelsea explains that lenders use a unique tool to review your credit report and provide tailored suggestions to improve your score. This tool outlines your actions and estimates how many points these actions could add to your score. Depending on how quickly you implement the recommended changes, these improvements can often be seen within 30 days.

Avoid these common credit mistakes. One of the biggest mistakes people make is paying off and closing credit accounts without consulting a professional. As Chelsea notes, closing a credit card can harm your score. Maintaining your accounts and following expert advice is vital to avoid unintentionally damaging your credit. Instead of making drastic changes, continue your usual financial habits or adjust them according to professional guidance.

Manage your debt-to-income ratio. Another critical factor in improving your credit score is understanding the relationship between your credit and debt-to-income ratio. Your credit score not only influences your mortgage interest rate—which determines your monthly payment—but also affects your eligibility for various loan programs. A higher credit score can lead to better mortgage insurance rates and more favorable debt-to-income ratios, making it easier to qualify for the loan you want.

Consult a trusted lender. If you’re thinking about buying a home and need clarification on your credit standing, the first step is to consult with a trusted lender. They can help you navigate the complexities of credit improvement and provide the support you need to boost your score. Whether buying your first home or your next, getting expert advice is vital to ensuring a smooth and successful home-buying process.

Your credit journey is unique, so personalized guidance is critical. Feel free to contact me at dana@danamonson.com or Chelsea Wagner at 509-389-6645 or via email at cwagner@s1l.com, whose deep understanding of credit improvement is unmatched. We’ll tailor a plan to your specific needs, ensuring you’re on the right track to achieving the best possible credit score before you start on your mortgage application.