What lenders pull
Mortgage lenders pull a tri-merge credit report — your credit history from all three bureaus (Experian, Equifax, TransUnion). They use the middle of three FICO scores for qualification (or the lower of two if you have a co-borrower).
This is different from the score you see on your credit card app or Credit Karma, which often uses VantageScore — a different scoring model. Don't be surprised if the lender's number is 10–30 points different than what you've been watching.
Score thresholds by program
- Conventional: 620 minimum, 740+ for best pricing.
- FHA: 580 with 3.5% down, 500–579 with 10% down.
- VA: No formal minimum, but most lenders want 580–620.
- USDA: Most lenders require 640+.
- Jumbo: 700+ for most programs.
These are minimums to qualify. Your rate scales with score within each program — every 20-point bump usually translates to better pricing.
What drives your score
Payment history (35% of FICO)
The biggest single factor. One 30-day late payment can drop a score 60–100 points and stays on your report for seven years (though impact fades over time). Pay everything on time.
Credit utilization (30%)
Balances divided by limits. Both individual card utilization and total utilization matter. Aim for under 30% on each card; under 10% is ideal.
Pay down balances at least 7–10 days before your statement closes — that's the balance reported to the bureaus. Paying after the statement closes doesn't help that month.
Credit history length (15%)
Average age of accounts and age of oldest account both matter. Don't close old credit cards even if you don't use them.
Credit mix (10%)
Having a mix of revolving (credit cards) and installment (auto, student, mortgage) credit helps. Don't open new accounts just for mix — but don't close existing installment loans early to "clean up" either.
New credit (10%)
Recent inquiries and new accounts. Each inquiry shaves a few points. Multiple inquiries within 14–45 days for the same loan type (mortgage, auto) typically count as one.
Common credit mistakes before a mortgage
- Closing old credit cards. Hurts utilization and average age.
- Opening new credit lines. Hurts inquiries and average age.
- Carrying high balances. Even if paid off in full each month, the balance reported to the bureaus matters.
- Co-signing for someone. Adds to your debt and ties their behavior to your credit.
- Disputing legitimate items right before applying. Active disputes can flag the file.
How long to clean up
Most credit improvements take 30–90 days to show:
- Paying down balances: 30–45 days.
- Removing inaccurate items: 30–45 days for disputes; longer for collections settlements.
- Building age: Years.
Don't try to game the system right before applying. Underwriters notice patterns. The most reliable strategy is steady, normal credit behavior over months and years.
What to do if your credit isn't ready
You have options:
- Wait and improve. 30–90 days of focused work on utilization and on-time payments often moves the score 20–40 points.
- Use a different program. FHA and VA accept lower scores than conventional.
- Add a co-borrower. A spouse or partner with stronger credit can help qualify.
- Consider non-QM lenders. Some lenders specialize in scenarios that don't fit standard credit profiles.
Want to know where you actually stand?
A free mortgage credit pull gives you the real number lenders use, plus actionable suggestions. Reach out and we'll run it.