Lesson · Facts first · Free
Mortgages — what the underwriter sees before you do
Six months before you shop for a house is when the credit work starts. Underwriters read your file like a report card — know exactly what they flag.
The facts
- 01Mortgage inquiries get the same treatment as auto: multiple mortgage pulls within 45 days (14 on older FICO versions) count as ONE inquiry. Collect Loan Estimates from several lenders inside that window — comparison shopping is free points-wise.
- 02Lenders compute debt-to-income from your REPORT: every reported minimum payment (cards, student loans, auto loans) counts against what you qualify for, even if you pay in full every month. Paying a card to $0 before applying removes its minimum from the DTI math.
- 03Do not open new credit between contract and closing. Many lenders re-pull your report days before closing — a new furniture-store card or car loan can change your DTI mid-escrow and kill the loan you were already approved for.
- 04Pay cards below 30% utilization — ideally under 10% — before you apply. Utilization has no memory in scoring, so this is one of the few real improvements you can make in the 30–60 days before a mortgage application.
- 05Government-backed loans are easier on thin or bruised credit: FHA allows lower scores with a larger down payment, and VA loans require no down payment or monthly PMI for eligible veterans (see the veterans lesson for the SCRA and funding-fee rules).
Sources
- CFPB — Mortgages: https://www.consumerfinance.gov/consumer-tools/mortgages/
- myFICO — Credit utilization rate: https://www.myfico.com/credit-education/credit-utilization-rate
Fix it yourself — free
The utilization calculator and the FCRA dispute-letter generator are free on the Credit Center. No signup, nothing to buy.
Open the free tools →Keep reading
Identity theft — the federal recovery playbook, in order
IdentityTheft.gov, the FCRA block that removes fraudulent accounts, and why the freeze comes first.
Credit-repair scams — the law that protects you and the red flags
CROA's advance-fee ban, why nobody can delete accurate items, and the CPN con that ends in fraud charges.
Veterans and service members — the credit rules written for you
The VA loan with no PMI, the SCRA 6% interest cap, and the MLA 36% cap most lenders will not volunteer.
What actually makes your credit score
The five FICO factors and their exact weights — so you fix the right thing first.
Disclaimer: Educational information only — not credit repair, legal, or financial advice. You can always dispute items yourself for free directly with the bureaus.