1. Pull your credit and look at it honestly
You can pull all three credit reports for free at AnnualCreditReport.com. Look for: collections you don't recognize, late payments that aren't yours, balances that look wrong, and accounts you forgot existed. Disputes take 30 days, so do this early.
Also check your scores. The score lenders use (FICO from Experian, Equifax, TransUnion) is often different from the score on your credit card app. Ask a loan officer to pull a tri-merge for you if you want the number that actually matters.
2. Pay down credit card balances — but don't close cards
Credit utilization (balance divided by limit) is one of the biggest score drivers. Getting individual cards under 30% utilization, ideally under 10%, is one of the fastest ways to bump a score 20+ points.
Don't close paid-off cards — closing reduces your total available credit and can ding your score. Just stop using them and let the balance sit at zero.
3. Don't open new credit before applying
Every credit inquiry shaves a few points off your score and signals to underwriters that you're taking on new debt. Two months before applying through closing, avoid: car loans, new credit cards, store financing, buy-now-pay-later accounts. Refinancing existing debt is sometimes okay, but check with a loan officer first.
4. Lower your debt-to-income ratio
DTI is your monthly debt payments (including the new mortgage) divided by your gross monthly income. Most loan programs cap DTI at 43–50%, with lower DTIs getting better rates.
The fastest ways to lower DTI: pay off small loans entirely (one less monthly payment), or earn more verifiable income. Increasing your hours, getting a documented raise, or adding a stable second job — anything that shows on a paystub — counts.
5. Build documented assets
Lenders want to see savings (down payment + reserves) seasoned for at least 60 days in your account. Large unexplained deposits in the two months before applying create extra scrutiny — "sourcing" and "seasoning" rules require you to document where the money came from.
Move money into your savings account well in advance. Gifts from family for a down payment are allowed but require a gift letter and bank statements showing the source.
Where to start
The single most useful first step is a free pre-approval. We'll pull credit, run the numbers, and tell you exactly what to fix and what's already strong enough. Request a quote or talk to a loan officer.