Saving up for a down payment can help you buy a home, but you should also focus on boosting your credit score. A higher rating makes qualifying for a mortgage loan much easier since it'll indicate your reliability. If you’re planning on buying a home, review the following tips for building credit.

How to Build Your Credit Score Before Buying a House

1. Review Your Report

Your credit report might contain mistakes that could be dragging down your score. Before applying for a mortgage loan, get copies of your report from each credit reporting bureaus and check them carefully for errors. If you find accounts that don’t belong to you, debts you’ve paid off marked as delinquent, or other mistakes, file a complaint immediately.

2. Pay Down Credit Card

mortgage loan

The amount of unused credit you have available is known as your credit utilization ratio. Lenders generally assume that borrowers who haven’t maxed out their credit cards are more financially responsible, so your utilization ratio can have a major impact on your score. Even if you can’t pay off your debts completely, focus on paying down your credit card and personal loan balances before applying for a mortgage.

3. Don’t Open New Accounts

After signing a contract for a house, you might be tempted to buy some new furniture or appliances for your new home. However, your mortgage lender may check your credit again before closing. Making any major financial moves before the deal is final could cause the lender to rescind the loan offer or increase your interest rate. Until you’ve closed on the new house, avoid taking on new debt or opening accounts.


If you’re buying a new home, turn to Armstrong County Building & Loan Association in Ford City, PA. This reliable business will provide the financial and personal services you need. Since 1925, they’ve helped prospective homeowners throughout the area find the most affordable rates. Visit their website to learn more about their services, or call (724) 763-7137 to start the application process.