How to get your credit mortgage-ready

Your credit history is one of the main factors a lender evaluates when reviewing your loan application. It is a good idea to prepare 30-90 days before having your credit pulled for preapproval.

To access your credit report for free, go to AnnualCreditReport.com and request access. The report won’t have credit scores, but you can look it over to make sure it is accurate. If you find any errors, you can file a dispute to the credit bureau that reported it.

If you have credit card debt, make sure you don’t have a high percentage of the limit spent. A good rule of thumb is keeping the balances down to one-third of the limit.

It is important to keep credit card accounts open even of you don’t use them. It helps the overall ratio of account balances to limits.

When you are ready to have a financial institution run your credit, make sure you don’t have a freeze or lock on your report. Just notify the credit bureaus to temporarily unfreeze or unlock your credit.

Try not to have any credit inquiries in the weeks and months leading up to applying for a home loan.

A combination of credit card accounts and installment loans can boost your score.

If you have some collections or delinquent accounts, contact the creditors and negotiate a settlement or payment plan. Also, ask them to change your account status to “paid in full” or “closed in good standing.”

If you would like to reduce the number of offers you receive, you can opt out. To protect yourself from unwanted solicitation, opt out of the prescreened offers at OptOutPrescreen.com for mail and DoNotCall.gov for phone calls.

Improving your credit score takes time, so starting early is key. Working on your credit will set you up for a stronger financial picture when applying for a mortgage.