How to Improve Your Credit Before Applying for a Mortgage

At Sherwood Mortgage Group, one of the most common conversations we have with clients is about credit. Many people worry that their score isn’t high enough, or they’re unsure of how it might affect their mortgage application. The truth is, your credit plays a huge role in the approval process, but it’s also something you can take steps to improve before you apply.

The first thing we recommend is understanding where you stand today. 

Checking your credit report with Equifax or TransUnion gives you a clear picture of your current score and history. It’s not uncommon for reports to have errors, and even a small mistake can affect how a lender views you. Taking the time to review and correct these details can give you a stronger starting point.

Once you know what’s in your report, focus on building consistency. Lenders like to see that bills are paid on time, every time. Even one missed payment can leave a mark, so setting up reminders or automatic payments can go a long way. We’ve worked with clients who were surprised at how quickly their score improved just by staying on top of payments for a few months.

Another way to strengthen your credit is by managing balances wisely. 

If your credit cards are always near the limit, it signals to lenders that you might be stretched thin financially. By paying down balances and keeping them well below the limit, you show that you can manage credit responsibly. This small change can make a big difference when it comes to approval. It’s also a good idea to avoid taking on new credit right before you apply for a mortgage. Every new application shows up in your report, and multiple inquiries can raise red flags. Instead, focus on maintaining the accounts you already have. In fact, older accounts in good standing can actually help you by showing a longer history of responsible borrowing.

Improving your credit doesn’t happen overnight, but it doesn’t have to be overwhelming either. With a little planning and some consistent habits, you can make noticeable improvements in a relatively short time. 

At Sherwood, we don’t just guide clients through the mortgage process, we also help them prepare for it. 

If you’re thinking about buying a home and want to know how to get your credit in the best shape possible, our team is here to walk you through every step.