Buying a home starts before you apply for a mortgage. Lenders look at your credit reports and scores to understand how you have handled credit — and your credit profile can affect whether you qualify and what rate you are offered. Getting mortgage-ready means understanding where you stand, working on what can be improved, and building a steady plan before you apply.
What lenders commonly look at
Every lender is different, and no one can promise an approval. In general, many lenders commonly look at these parts of your credit profile:
- Credit scores. Many lenders use credit scores as a starting point. For many conventional loans, lenders commonly look for scores in the low-to-mid 600s and above, though requirements vary by loan type and lender — and a score alone does not decide an application.
- Payment history. A record of on-time payments matters. Late payments, collections and charge-offs can weigh on your file.
- Credit utilisation. How much of your available credit you are using. Lower utilisation is generally viewed more favourably by lenders.
- Negative items. Bankruptcies, foreclosures and collections can stay on credit reports for years and can affect how a lender views an application.
- Length of history and mix of accounts. A longer history and a mix of account types can help, but opening accounts just to change your mix is not a good idea — and it can work against you.
How Prime Credit Advisors helps you prepare
We work with you in four ways:
- Report review. We review your credit reports with you, line by line, and help you understand what is on them.
- Disputes. We prepare and send disputes for items that appear inaccurate, incomplete or unverifiable, and track the responses.
- Utilisation plan. We help you plan how to bring balances down in a way you can sustain, because utilisation is one of the parts of your file you can influence most directly.
- Timeline discipline. We help you set a realistic timeline and avoid moves that can hurt a mortgage application — like opening new accounts or closing old ones close to applying — until you have talked it through.
Your mortgage-readiness checklist
- Check all three credit reports — you can get them free at AnnualCreditReport.com.
- Know your scores and what is lowering them.
- Bring high balances down where you can, and keep your payments on time.
- Do not open new credit accounts or close old ones before you apply.
- Talk to us — or to your mortgage professional — before you dispute anything close to an application, so you understand the timing.
- Keep your address and employment information up to date on your accounts.
Start with a free consultation
If you are thinking about buying a home, start with a free consultation. We will review your reports with you, talk about where you stand, and help you build a plan. Book a free consultation — or first see how we work and the areas we serve.
Already in Chicago? Our Chicago credit repair page has local detail for homebuyers in the city and suburbs.