Do not take on new debt
Hold off on a car loan, new cards or financing furniture until after closing. New debt can change which loans fit.
Credit
Ideas to improve your credit
Your credit affects which loans fit and what they cost. Here are practical steps that can help before you apply, what to avoid while your loan is in process, and options if your credit is not perfect.
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Fidelity Residential · NMLS #103098 · Equal Housing Lender
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Steps that help
Steps that can help your credit
There is no quick fix, and no one can legally remove accurate information from your report. These habits help over time.
- Check your reports. Get your free credit reports from the three bureaus at AnnualCreditReport.com, the official site, and dispute anything that is wrong.
- Pay every bill on time. Payment history matters most. Set up reminders or automatic payments.
- Lower your card balances. Using less of your available credit helps. Pay balances down rather than moving them around.
- Keep older accounts open. A longer credit history helps; closing old cards can shorten it.
- Open new credit only when you need it. Each application can lower your score a little for a time.
- Be careful about co-signing. A loan you co-sign counts as your debt, and late payments on it show on your report.
While you apply
What to avoid while your loan is in process
Do not close accounts or move money without asking
Large deposits must be traced, and closing accounts can change your score. Ask your loan officer first.
Keep paying everything on time
A late payment during the process can affect your loan. Keep paying your rent or mortgage and other bills as usual.
Options
If your credit is not perfect
FHA loans
FHA loans accept smaller down payments and lower credit scores than most conventional loans. FHA sets waiting periods after events such as a bankruptcy or foreclosure.
About FHA loansPrograms outside the standard rules
Some programs consider a recent credit event, such as a bankruptcy, foreclosure or short sale. They usually ask for a larger down payment and cost more.
Alternative documentation loansUsing your equity
A cash-out refinance can pay off higher-interest debts such as credit cards. It replaces your mortgage with a larger one, so weigh the cost and the risk to your home.
Cash-out refinance
Questions
Common questions about credit
Will checking my own credit lower my score?
No. Checking your own reports does not affect your score. A lender's check when you apply for credit can lower it a little for a time.
Should I use a credit repair company?
Be cautious. Anything a credit repair company can do legally, such as disputing errors, you can do yourself for free. No one can remove accurate, current information. For legal questions about debts or bankruptcy, talk to your own attorney.
How do lenders read my credit?
They look at your scores from the credit bureaus and at your payment history, debts and recent credit. See understanding your credit.
Have a question we did not answer?
Talk it through with a licensed loan officer, get a quote, or apply online.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.