How to Get Mortgage-Ready (Even If Your Credit Isn't Perfect)

One of the most common things I hear from people is: "I want to buy a home, but my credit isn't where it needs to be."

Here's what I want you to know: imperfect credit is a starting point, not a stop sign. I've seen clients go from a 540 to a 680 in under 12 months with the right strategy. It takes focus, but it's absolutely doable.

Here's what the process actually looks like.

What Score Do You Need?

It depends on the loan type:

• Conventional loan: 620 minimum (740+ gets you the best rates)
• FHA loan: 580 with 3.5% down, or 500 with 10% down
• VA loan: No official minimum, but most lenders want 580+
• USDA loan: 640 is typical

Your credit score determines both whether you qualify and how much your loan costs you over time. A 100-point difference in score can translate to thousands of dollars over the life of your mortgage.

The 5 Factors That Make Up Your Credit Score

1. Payment history (35%): The single biggest factor. Every on-time payment builds your score.
2. Credit utilization (30%): How much of your available credit you're using. Stay under 30% if possible, under 10% if you're optimizing.
3. Length of credit history (15%): Older accounts help. Don't close your oldest credit card.
4. Credit mix (10%): A mix of installment loans and revolving credit looks better than just one type.
5. New inquiries (10%): Multiple hard inquiries in a short window can dip your score temporarily.

The Steps to Get Mortgage-Ready

1. Pull Your Full Credit Report

Get your reports from all three bureaus: Equifax, Experian, and TransUnion. Look for errors. Errors are more common than most people think, and disputing them can improve your score quickly.

2. Pay Down High Balances

If you have credit cards that are near their limit, pay them down as aggressively as you can. Getting your utilization below 30%, then below 10%, can move your score meaningfully in 30–60 days.

3. Don't Open New Credit

It's tempting to open a new credit card for the rewards or to manage cash flow, but each new account triggers a hard inquiry and lowers your average account age. Hold off until after closing.

4. Don't Close Old Accounts

Closing a credit card reduces your total available credit and can raise your utilization ratio. Keep old accounts open, even if you don't use them regularly.

5. Set Up Autopay

A single missed payment can drop your score 60–100 points. Set up autopay for at least the minimum on every account.

6. Address Collections

Collections don't automatically disqualify you, but they need to be dealt with. Talk to a credit specialist before paying off an old collection, because sometimes paying it can actually hurt your score if the account is very old. Know your strategy first.

How Long Does It Take?

Honestly? It depends on where you're starting. Some clients see significant movement in 60–90 days. Others need 6–12 months of consistent effort. The key is having a specific plan, not just general advice.

That's exactly what the May's HomeBridge Credit Readiness Starter Kit is designed to do: give you a personalized credit action plan and a timeline to mortgage-ready status.

You Don't Have to Figure This Out Alone

This process is a lot clearer when you have someone who has walked hundreds of people through it sitting across from you. I know what works, what doesn't, and what lenders are actually looking for.

Book a Strategy Session and let's take an honest look at where you are and what it will take to get you to closing day.