Improve Your Credit Score Before You Apply for a Mortgage Loan

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Common errors you make can drive down your credit score

By Laura Sherman
Improve your credit score
Western Montana Real Estate

Improve your chances of a mortgage loan by improving your credit score first.

When you are shopping for a home loan, you will probably want to get pre-approved. How you handle your current credit is crucial. If you don’t know what can hurt your score, you could make the wrong move.
Lenders are very interested in the ratio of your current balance to the available limit. They like to see that you can handle credit, but that you also won’t give in to temptation and use all your available credit.
For this reason, don’t consolidate all your cards onto one card. This will most likely change your ratio for the worse.  Let’s look at an example.