Preparing your credit for a mortgage can save you thousands. Here's your complete 6-month roadmap to get the best rates and terms.
6 Months Before: Foundation Building
Pull All Three Credit Reports
- Get reports from Experian, Equifax, and TransUnion
- Check for errors and dispute immediately
- Note which scoring model your lender uses
Target Credit Score Goals
3 Months Before: Optimization Phase
Pay Down Credit Cards
Reduce utilization below 10% on all cards. This alone can boost your score 20-50 points.
Avoid New Credit
Stop applying for new credit cards or loans. Each inquiry can drop your score 5-10 points.
Keep Old Cards Open
Closing cards reduces available credit and increases utilization. Keep them open with small recurring charges.
1 Month Before: Final Preparations
⚠️ Credit Freeze Zone
- NO new credit applications
- NO large purchases on credit
- NO closing accounts
- NO co-signing loans
Document Preparation
- 2 years of tax returns
- 2 months of bank statements
- Recent pay stubs
- Explanation letters for any credit issues
Rate Impact Calculator
How Credit Scores Affect Your Mortgage
On a $300,000 30-year fixed mortgage:
| Credit Score | APR | Monthly Payment | Total Interest |
|---|---|---|---|
| 760-850 | 6.5% | $1,896 | $382,633 |
| 700-759 | 6.7% | $1,936 | $397,066 |
| 680-699 | 6.9% | $1,976 | $411,533 |
| 620-679 | 7.5% | $2,098 | $455,233 |
140-point difference = $72,600 extra in interest!
Quick Credit Boosts
Rapid Rescore (1-2 weeks)
Pay off credit cards and have lender request updated scores
+20-40 points
Authorized User (1 month)
Get added to established card with perfect payment history
+10-30 points
Pay Down Installments (1-2 months)
Reduce installment loan balances below 80% of original
+5-15 points
Ready to Prepare for Your Mortgage?
Get your personalized mortgage prep timeline and credit optimization plan.