To secure a mortgage with the best interest rates possible, you’ll need great credit. You’ll also have to maintain your score until the actual closing. Otherwise, the lender could withdraw from the transaction. Here are some of the most effective ways to achieve—and maintain—a decent credit score for the home-buying process.

Do:

Continue making on-time payments.

A single missed payment could hurt credit considerably, so pay at least the minimum due on each account every month. It’s also wise to put any disposable income toward your various debts so you're in the best position possible when applying for a mortgage. 

Use cash for bigger purchases.

If you have to make a major purchase shortly before applying for a home loan, use cash. Charging a new TV or couch is going to hurt your debt-to-income ratio and, subsequently, your credit score. If you can’t afford to pay cash, hold off unless the purchase is essential, like medical equipment. 

Don’t:

Change jobs.

Lenders will want to see that you have a reliable work history. Switching jobs right before applying for a mortgage may not hurt your score, but it’ll affect your creditworthiness in the eyes of the lender. 

Close old accounts.

Closing old accounts that you rarely or never use might simplify your financial life, but it could impact your score. The average age across all accounts affects credit because lenders want to see a long history of responsible borrowing. At the end of the day, closing some of your oldest accounts will bring this number—and your score—down. 

When you’re ready to apply for a mortgage, turn to Dan Main for help. From his office in St. Peters, MO, this home loan expert helps clients secure all kinds of financing. Put his 20 years of experience to work for you, whether you want to apply for a conventional, FHA, or VA loan. He also assists with purchasing USDA rural housing, financing new structures, and refinancing existing mortgages. You can connect with Dan on Facebook, on his website, or over the phone by calling (636) 284-4144. 

Dan Main: NMLS # 502036
Flat Branch Home Loans NMLS # 224149
947 Waterbury Falls Dr
O’Fallon, MO 63368
This is for informational purposes only and not an offer to lend or extend credit.