How to Improve Your Credit Score Before Applying for a Mortgage

How to Improve Your Credit Score Before Applying for a Mortgage
Tips for Arizona Homebuyers to Secure Better Rates and Stronger Loan Options

When it comes to buying a home—especially in competitive markets like Greater Phoenix—your credit score can make or break your ability to qualify for a mortgage and influence the interest rate you receive. A higher score can save you thousands over the life of your loan, while a lower score might mean higher monthly payments or even loan denial.

If you're planning to buy a home in the next few months (or even year), here are actionable steps you can take right now to boost your credit score and prepare yourself for mortgage success.

1. Check Your Credit Report for Errors

Before you can improve your credit, you need to know where you stand.

• Request your free report from all three major credit bureaus (Experian, Equifax, and TransUnion) at AnnualCreditReport.com.
  
  

• Look for mistakes or outdated accounts: incorrect late payments, balances that have already been paid, or accounts that don’t belong to you.
  
  

• If you find errors, dispute them immediately—they could be dragging your score down unnecessarily.
  
  

2. Pay Down Credit Card Debt

Credit utilization—how much of your available credit you’re using—is a key factor in your score.

• Aim to use less than 30% of your credit limit on each card. Lower is even better.
  
  

• If possible, make extra payments to reduce your balances or ask for a credit limit increase (without a hard inquiry).
  
  

• Avoid closing old accounts, even if you’ve paid them off—it can hurt your credit utilization ratio and credit history length.
  
  

3. Make Every Payment On Time

Payment history is the single biggest factor in your credit score (about 35%).

• Set up auto-pay or payment reminders to stay on top of due dates.
  
  

• One missed payment can stay on your report for seven years, so consistency matters.
  
  

• If you’ve had late payments in the past, focus on building a current streak of on-time payments to outweigh the negative marks.
  
  

4. Avoid Opening New Credit Accounts

While it might be tempting to open a new credit card for points or deals, avoid doing this while preparing for a mortgage.

• Every new credit application results in a hard inquiry, which can temporarily lower your score.
  
  

• New accounts can also reduce your average credit age, another factor in your credit health.
  
  

5. Don’t Close Old Credit Lines

It might seem like closing a paid-off card is a responsible move, but it can actually harm your score.

• Keep old accounts open, especially those with long histories and good standing.
  
  

• These accounts contribute to your average account age and help keep your credit utilization lower.
  
  

6. Become an Authorized User

If a close friend or family member has a long-standing credit card account with good payment history and low utilization:

• Ask if they’d be willing to add you as an authorized user.
  
  

• You don’t have to use the card—but you may benefit from their positive payment history.
  
  

7. Work with a Lender Early

Once you’ve started taking steps to improve your credit, talk to a local lender in the Greater Phoenix area.

• A good lender can help you review your score, suggest tailored improvements, and even offer pre-approval when the time is right.
  
  

• They’ll also help you understand what loan programs you may qualify for, including FHA, VA, and conventional options based on your credit profile.
  
  

Final Thoughts

Improving your credit score before applying for a mortgage isn’t just about getting approved—it’s about securing a lower interest rate, qualifying for better loan terms, and increasing your buying power in a competitive market like Phoenix, Mesa, Gilbert, or Chandler.

With a little time, planning, and discipline, you can set yourself up for homeownership success and possibly save tens of thousands over the life of your loan.

Ready to take the next step?
Let’s talk about your homebuying goals. Whether you’re 6 weeks or 6 months out, I can help you connect with trusted local lenders and start your real estate journey with confidence.

📲 Reach out today and let’s make a plan!