Managing your credit is incredibly important in many aspects of life, but it is also one of the biggest factors in whether or not you can qualify for particular mortgages.  Managing your credit well is one of the best things you can do to prepare to apply for a mortgage (or get a better mortgage!) ‘

Tips to Managing Your Credit and Getting a Better Loan:

  • Don’t be late. It’s simple, but don’t miss payments.  Keeping a steady and on-time payment history is important, and lenders look for it when they evaluate you for a loan.  In the mortgage world, if you have been over 30 days late to make a mortgage payment, you have to wait a year before you can refinance or purchase.
  • Avoid big purchases. If you’re looking to buy a house in the near future, avoid making big purchases.  The new car?  It can wait.  That much cash flow out of your account can raise a lot of questions when lenders look at your account.
  • Don’t open a bunch of credit cards at once. Every time you give your social security number and someone pulls your credit, it’s considered a “hard pull” and will show up on your credit report.  TIP: even getting a department store credit card will be considered a hard pull.  So when you’re managing your credit, keep in mind that the more inquiries you have over a short period of time, the more it lowers your credit score. Keep yourself to fewer inquiries, and spread them out.
  • Don’t close a bunch of credit cards at once. Basically, everything in moderation.  Don’t panic and close a bunch of cards at once. Lenders are looking for you to being using 30% or less of your available credit.  So having a lot of credit available to you doesn’t actually hurt you – but closing a bunch of your cards could move you from using under 30% to well over 30%.


Don’t be too overwhelmed by the idea of managing your credit – we hope these few simple tips help get you started in the right direction.  And when it does come time to buy that perfect house, give us a call!  We’re a Christian Mortgage Lender and we value the same things you do – faith and family.  We’d love to help.




The Christian Mortgage Mom