By Mike Basti, President and Mortgage Broker · NMLS #322904To improve your credit score before buying a house: (1) pay revolving balances below 30% (ideally under 10%) of their limits, (2) dispute and fix report errors, (3) never miss a payment, (4) avoid opening or closing accounts before applying, and (5) keep old accounts open. Balance paydown and error fixes can move your score in 30–60 days; payment history takes longer.
Why your score matters for a mortgage
Your credit score sets both whether you qualify and the rate you’re offered. The difference between a 660 and a 760 score can be a full percentage point on your rate — tens of thousands of dollars over the life of a California-sized loan. Lenders use the middle of your three bureau scores (and the lower middle score of two borrowers).
The highest-impact moves
- Pay down credit-card balances. Utilization (balance ÷ limit) is about 30% of your score. Getting each card and your overall usage under 30% — ideally under 10% — is the fastest legitimate boost, often visible in one to two statement cycles.
- Fix report errors. Pull all three reports and dispute wrong balances, duplicate accounts, or fraud. Corrections can lift a score quickly.
- Pay every bill on time. Payment history is ~35% of your score; even one 30-day late can drop you 50+ points. Set autopay.
- Don’t open or close accounts. New inquiries and closed cards can lower your average age and available credit right when you need stability.
- Keep old accounts open. Length of history helps; leave old cards open with small recurring charges.
How fast can it move?
Utilization and error fixes can help within 30–60 days. Rebuilding after late payments or collections takes months. A specialized tactic — rapid rescore — lets a lender update corrected balances in days when you’re close to a threshold; ask your broker.
Can’t wait? You may still qualify
If your score isn’t there yet, options exist. FHA loans allow 580 (sometimes 500 with 10% down), and a broker can place a lower-credit file with the right lender. See also what credit score you need to buy a house.
Bottom line: Don’t guess — have a broker read your credit and tell you exactly which two or three moves lift your score fastest for your file. It’s free.
A 90-day credit plan before you apply
| When | What to do |
|---|---|
| Week 1 | Pull your reports from all three bureaus and list every error. |
| Week 2 | Dispute errors. Pay cards down before each statement closing date, because that is the balance the issuer reports. |
| Days 30–60 | Watch the new balances post. Open no new accounts and add no new debt. |
| Days 60–90 | Get pre-approved. If you are a few points below a pricing tier, ask about a rapid rescore. |
The statement date tip matters. Paying a card on its due date can still show a high balance if the statement already closed. Keep receipts for every dispute and payoff, since an underwriter may ask for proof.
Score minimums that matter by loan type
| Loan type | Typical minimum score |
|---|---|
| FHA | 580 with 3.5% down; 500–579 with 10% down |
| Conventional | About 620 |
| VA | No VA-set minimum; lenders often want 580–620 |
| Non-QM (bank statement, DSCR and similar) | Generally 640+ |
| HELOC | About 680+ |
Clearing a minimum gets you approved. Higher scores usually improve pricing too. Read more in our credit score guide.
Mistakes that drop your score during escrow
- Financing a car or furniture before closing.
- Co-signing a loan for someone else.
- Missing a payment because autopay was switched off.
- Closing old cards to “clean up” your file.
Lenders often check for new debt again right before funding. Keep everything steady until you have the keys. If a new account or late payment does show up, tell your broker right away. It is much easier to fix before closing day than on it. Rates change daily, so for an accurate quote call 949-379-5320 (Newport Beach) or 310-759-4757 (Marina del Rey).
Frequently asked questions
How fast can I raise my credit score to buy a house?
Paying down card balances and fixing report errors can help in 30–60 days. Recovering from late payments or collections takes several months of clean history.
What credit score do I need to buy a house?
FHA allows 580 (sometimes 500 with 10% down); conventional typically wants 620+. 700+ earns meaningfully better rates.
Does paying off collections raise my score?
It can, and it removes a barrier to approval, but newer scoring models weigh recent payment behavior more heavily. Ask your broker whether paying, settling, or a pay-for-delete helps most before you act.
Should I pay off my car loan before buying a house?
Not necessarily — installment debt affects your score less than credit-card utilization. Paying down cards usually helps your score and your debt-to-income ratio more. Check with your loan officer first.
Does checking my own credit lower my score?
No. Checking your own reports or scores is a soft inquiry and does not affect your score. Only applications for new credit create hard inquiries.
Will several mortgage credit pulls hurt my score?
Usually very little. Scoring models generally treat multiple mortgage inquiries within a short shopping window, typically 14 to 45 days depending on the model, as a single inquiry.
Save Financial, Inc. — NMLS #377740, DRE #01875766. Equal Housing Opportunity. Figures are illustrative for 2026 and not an offer of credit or a guarantee of rates or approval.