Your credit score is one of the biggest factors in what mortgage rate you'll get — and even a 20-30 point improvement can make a real difference in your monthly payment. Here's how to actually move the needle before you start house hunting.
Why Credit Score Matters So Much
Lenders use your credit score to determine risk, and risk determines your interest rate. A higher score doesn't just mean approval — it means a lower rate, which over a 30-year loan can mean tens of thousands of dollars in savings.
It also affects which loan programs you qualify for. Conventional loans generally want 620+, FHA opens up around 580, and VA loans have no official minimum but most lenders still look for 580-620 depending on the rest of your profile.
The Fastest Ways to Improve Your Score
Pay down credit card balances. Your credit utilization — how much of your available credit you're using — is one of the biggest scoring factors. Getting balances under 30% of your limit, and ideally under 10%, can boost your score quickly, often within one billing cycle.
Don't close old credit cards. Closing a card reduces your total available credit, which can increase your utilization ratio and actually hurt your score. Keep old accounts open even if you don't use them.
Pay everything on time, every time. Payment history is the single largest factor in your score. Set up autopay on at least the minimum for every account so nothing slips through.
Avoid new credit inquiries before applying. Opening a new credit card or auto loan in the months before applying for a mortgage can lower your score and raise red flags with underwriters. Hold off on new credit until after you close.
Dispute errors on your credit report. Credit reports have mistakes more often than people realize — wrong balances, accounts that aren't yours, late payments that were actually on time. Pull your reports and dispute anything inaccurate.
What Doesn't Help (Common Myths)
Checking your own credit score does not hurt it — that's a soft inquiry. Only hard inquiries from actual credit applications affect your score.
Paying off a loan early doesn't always boost your score significantly, and closing the account afterward can sometimes lower it. Installment loans like auto loans and personal loans don't impact your score the same way revolving credit does.
How Long Does It Take to See Improvement?
Some changes show up fast — lowering a credit card balance can reflect within 30 days. Other things like removing a collection or building payment history take longer, sometimes 3-6 months.
The key is starting early. If you're planning to buy in the next 6 months, now is the time to start cleaning things up.
Already Have Decent Credit? Don't Wait
If your score is already in a good range, don't assume you need to wait to improve it further before buying. Sometimes the better move is locking in a home now rather than chasing a few extra points while home prices and rates move.
Not Sure Where You Stand?
The best move is to have your credit reviewed alongside your full financial picture. I can tell you exactly what loan programs you currently qualify for and what specific changes would make the biggest impact for your situation.
Book a free call with Trey or start your pre-approval here to find out where you stand today.
Trey Garza is a Licensed Texas Loan Officer at Efinity Mortgage in San Antonio. NMLS# 2700813. Equal Housing Opportunity.