Conventional loans

Conventional loans are not insured by the government and typically require a higher credit score. With a 620 score, you may qualify for a conventional loan, but expect higher interest rates and a larger down payment. Lenders will scrutinize your financial profile more closely in this case.

FHA loans

FHA loans are designed to help lower-income and first-time homebuyers. With a credit score of 620, you may qualify for an FHA loan with a minimum down payment of 3.5%. These loans offer more lenient guidelines, making them a viable option for borrowers with fair credit.

VA loans

VA loans are available to veterans and active-duty military members, often without a minimum credit score requirement. However, lenders may still prefer scores above 620 for better terms. Understanding the specific lender requirements is crucial if you are a veteran looking to utilize this benefit.

How does a 620 credit score affect mortgage interest rates?

A 620 credit score can lead to higher mortgage interest rates compared to borrowers with higher scores. Lenders view lower scores as a higher risk, resulting in increased costs over the life of the loan. Understanding the implications of interest rates can help you budget accordingly.

Comparison of interest rates for different credit scores

Interest rates significantly vary based on your credit score. For example, borrowers with a score above 740 may secure rates around 3.0%, while those at 620 might face rates of 4.5% or higher. This discrepancy illustrates the importance of credit scores in determining loan costs.

Impact on monthly payments

Higher interest rates directly affect your monthly mortgage payments. For instance, a $200,000 mortgage at a 3.0% rate results in payments of approximately $843, while a 4.5% rate increases this to around $1,013. Understanding these differences can help you prepare for the financial commitment of homeownership.

Long-term costs of higher interest rates

Over the life of the loan, even a small difference in interest rates can lead to substantial costs. For instance, a $200,000 mortgage at 3.0% costs about $143,000 in interest over 30 years, while a 4.5% mortgage may exceed $181,000 in interest. Evaluating these long-term implications is crucial before committing to a mortgage.

What are the eligibility criteria for FHA loans with a 620 credit score?

FHA loans have specific eligibility criteria, including a minimum credit score of 580 for a 3.5% down payment. With a 620 score, you meet this requirement, but other factors like your debt-to-income ratio and employment history will also be evaluated.

Minimum down payment requirements

For a borrower with a 620 credit score, the minimum down payment required for an FHA loan is 3.5%. This lower down payment option makes FHA loans appealing for first-time homebuyers or those with limited savings. However, a higher down payment can improve your approval chances and terms.

Debt-to-income ratio considerations

Your DTI ratio is crucial in the FHA loan approval process. Generally, a DTI ratio of 43% or lower is preferred, but some lenders may allow higher ratios for borrowers with compensating factors. Maintaining a lower DTI can enhance your chances of approval.

Property requirements

FHA loans have specific property requirements, including that the home must be your primary residence and meet certain safety and livability standards. Ensure the property is eligible under FHA guidelines to avoid complications during the loan approval process.

What options do I have if I am denied a mortgage with a 620 credit score?

If denied a mortgage with a 620 credit score, there are several paths to consider. Improving your credit score, seeking alternative financing options, or consulting with a mortgage broker can help you find a way to secure a mortgage.

Improving your credit score

Improving your credit score is one of the most effective strategies for increasing your chances of mortgage approval. Paying down existing debts, making timely payments, and disputing any inaccuracies on your credit report can help boost your score. Regularly monitoring your credit can also reveal areas for improvement.

Alternative financing options

Consider alternative financing options if traditional mortgage lenders deny your application. These include personal loans, rent-to-own agreements, or private lenders who may have more flexible criteria. Exploring these alternatives can provide a pathway to homeownership despite a lower credit score.

Working with a mortgage broker

A mortgage broker can be invaluable when navigating the mortgage landscape, particularly with a lower credit score. They have access to a range of lenders and can help match you with options that suit your financial situation. Their expertise can streamline the process and improve your chances of approval.

Can I refinance my mortgage with a 620 credit score?

Refinancing with a 620 credit score is possible but may come with challenges. Eligibility depends on your current loan type and the lender’s specific requirements. Understanding the refinancing process can help you make informed decisions.

Eligibility for refinance

To refinance with a 620 credit score, you generally need to meet specific lender requirements, often including a stable income and a low DTI ratio. FHA streamline refinances may also be available, allowing you to refinance with fewer credit restrictions. Assessing your current financial situation is essential before proceeding.

Benefits of refinancing

Refinancing can lower your interest rate, reduce monthly payments, or allow you to access equity in your home. This financial maneuver can help you save money over the life of the loan or fund home improvements. Evaluating these benefits can help you decide if refinancing is right for you.

Potential costs involved

While refinancing can offer advantages, it also involves costs, such as closing fees and appraisal expenses. These costs can offset potential savings, so it’s crucial to calculate your break-even point before moving forward. Understanding the financial implications will ensure you make an informed decision.

How important is my debt-to-income ratio for mortgage approval?

Your debt-to-income (DTI) ratio is a critical factor in mortgage approval. It measures your monthly debt payments against your gross monthly income, helping lenders assess your ability to manage monthly mortgage payments alongside other debts.

What is debt-to-income ratio?

The DTI ratio is calculated by dividing your total monthly debt payments by your gross monthly income. A lower DTI indicates more disposable income, making you a more attractive candidate for mortgage approval. Lenders typically prefer a DTI ratio of 43% or lower for FHA loans.

Ideal debt-to-income ratios for mortgage approval

While the ideal DTI ratio varies by lender, most prefer a ratio below 43%. Some lenders may accept higher ratios if you can demonstrate compensating factors, such as a substantial down payment or strong credit history. Understanding lender preferences can help you strategize for approval.

How to improve your debt-to-income ratio

Improving your DTI ratio involves reducing debt or increasing your income. Strategies include paying down credit cards, consolidating loans, or finding additional sources of income. A lower DTI ratio can significantly enhance your mortgage approval chances.

What documentation do I need to apply for a mortgage?

When applying for a mortgage, specific documentation is required to verify your financial status. Essential documents include proof of income, employment verification, and your credit history. Understanding what is needed can streamline the application process.

Proof of income and employment

Most lenders require recent pay stubs, tax returns, and employment verification letters to confirm your income. Self-employed individuals may need to provide additional documentation, such as profit and loss statements. Having these documents ready can speed up your mortgage application process.

Credit history requirements

Your credit history plays a significant role in mortgage approval, and lenders will check your credit report for accuracy. It’s wise to review your credit history before applying to address any discrepancies. Ensuring your credit report is accurate can improve your chances of securing a mortgage.

Other necessary documentation

In addition to income and credit documentation, lenders may require bank statements, asset documentation, and information about your debts. Being organized and having all necessary paperwork can streamline the application process and demonstrate your preparedness to lenders.

How can I improve my credit score before applying for a mortgage?

Improving your credit score before applying for a mortgage is crucial for securing favorable terms. Strategies include paying down debts, correcting errors on your credit report, and responsibly establishing new credit. Proactively enhancing your score can lead to better loan options.

Paying down existing debts

Reducing your existing debt load has a direct positive impact on your credit score. Focus on paying off high-interest credit cards first, as this can lower your credit utilization ratio. A lower utilization ratio can significantly enhance your credit profile over time.

Correcting errors on credit reports

Regularly reviewing your credit reports for errors is essential, as inaccuracies can negatively affect your score. Disputing any discrepancies with credit bureaus can help improve your score. Utilizing free resources to check your credit report can ensure your information is accurate and up to date.

Establishing new credit responsibly

Responsibly establishing new credit can also help improve your score. Consider opening a secured credit card or becoming an authorized user on a family member’s account. Consistent, on-time payments will bolster your credit history and improve your overall score.

What are the common misconceptions about credit scores and mortgages?

Many misconceptions surrounding credit scores and mortgages can lead to confusion. Understanding these myths can empower you to make informed decisions when applying for a mortgage with a lower credit score.

Myths about credit score ranges

One common myth is that all lenders view credit scores the same way. Different lenders may have varying standards for what constitutes a “good” score. Understanding these nuances can help you find lenders that fit your financial profile.

Misunderstandings about credit inquiries

Another misconception is that applying for multiple mortgages will severely damage your credit score. While hard inquiries can impact your score, multiple inquiries within a short period typically count as one. This is important when shopping for the best mortgage rates.

Beliefs about credit repair services

Some believe that credit repair services can quickly fix their credit issues. However, many legitimate improvements require time and effort on your part, such as paying bills on time and improving credit utilization. Understanding this can help set realistic expectations for credit improvement.

Are there government programs to help buyers with a 620 credit score?

Yes, several government programs can assist buyers with a 620 credit score. Options include USDA loans for rural properties and various state and local first-time homebuyer programs. Exploring these resources can provide additional support in your home-buying journey.

USDA loans

USDA loans are designed for low-to-moderate-income buyers in eligible rural areas. With no down payment required and lower mortgage insurance costs, these loans can be attractive for those with a 620 credit score. Understanding the eligibility criteria is essential for leveraging this option.

State and local first-time homebuyer programs

Many states and local governments offer first-time homebuyer programs that provide down payment assistance and favorable loan terms. Checking with your local housing authority can uncover additional resources tailored to your specific situation.

Non-profit organizations

Non-profit organizations often provide financial education and assistance programs for homebuyers with lower credit scores. These resources can guide you through the mortgage process and help you improve your financial literacy, ultimately enhancing your chances of approval.

What role does a co-signer play in mortgage approval?

A co-signer can significantly enhance your chances of mortgage approval, especially with a 620 credit score. They agree to take on responsibility for the loan if you default, allowing lenders to consider their creditworthiness alongside yours.

Benefits of having a co-signer

Having a co-signer with a stronger credit profile can improve your loan terms, including lower interest rates and better repayment options. This can make it easier to qualify for the loan, as lenders view the combined financial responsibility as a reduced risk.

Risks involved for co-signers

While co-signing can help you secure a mortgage, it carries risks for the co-signer. If you fail to make payments, their credit score could suffer. It’s crucial to communicate transparently with your co-signer about your financial situation and repayment plans.

How to choose a co-signer

Choosing the right co-signer is vital for a successful mortgage application. Consider individuals with stable incomes and good credit histories. Family members or close friends who understand the risks can make excellent co-signers, provided they are willing to take on this responsibility.

How can I prepare for the mortgage application process?

Preparing for the mortgage application process involves several critical steps. By organizing your finances, gathering necessary documentation, and understanding what to expect, you can enhance your chances of approval.

Steps to take before applying

Before applying for a mortgage, review your credit report, paying close attention to any areas needing improvement. Additionally, gather all necessary financial documents to ensure a smooth application process. Establishing a budget can also help you understand how much you can afford.

What to expect during the application

During the application process, lenders will evaluate your financial profile, including your credit history, income, and debts. They may also require a home appraisal and additional documentation. Being prepared for these steps can help alleviate stress during the application process.

How to stay organized

Staying organized is crucial throughout the mortgage application process. Create a checklist of required documents and deadlines, and keep all financial records in one place. This will streamline communication with lenders and help you present a complete application.

What are the consequences of applying for a mortgage with a low credit score?

Applying for a mortgage with a low credit score can result in several consequences, including higher interest rates and limited loan options. Understanding these implications can help you make informed decisions about your home financing.

Higher interest rates

Borrowers with lower credit scores typically face higher interest rates, which can significantly increase monthly payments and overall loan costs. Evaluating your budget and financial capabilities before applying is essential to ensure you can manage these increased costs.

Limited loan options

Low credit scores can limit your mortgage options, as many lenders have minimum requirements. This may force you to consider loans with less favorable terms or higher costs. Knowing your limitations can guide you in finding suitable mortgage solutions.

Potential impact on home buying timeline

Applying with a low credit score can delay your home buying timeline, as you may need to take additional steps to improve your credit before securing a mortgage. Being proactive about your financial health can help you navigate these challenges and expedite the process.

What is the significance of credit history in mortgage approval?

Your credit history is crucial during the mortgage approval process, as it provides lenders with insights into your past financial behavior. A strong credit history can enhance your chances of approval, while a poor history may raise red flags.

Length of credit history

The length of your credit history influences your credit score and lenders’ perceptions of your reliability. A longer credit history can positively impact your score, as it shows a pattern of responsible borrowing. If you’re new to credit, building a solid history over time is essential.

Types of credit accounts

Your credit report includes various account types, such as installment loans and revolving credit. A mix of credit types can positively impact your score, as it demonstrates your ability to manage different forms of debt. Strive for a balanced credit profile for better mortgage options.

Recent credit activity

Recent credit activity, such as new accounts or inquiries, can impact your credit score. Multiple inquiries within a short period may indicate financial distress, potentially affecting lender perceptions. Monitoring your credit activity and maintaining a stable profile is crucial before applying for a mortgage.

How can I find lenders that accept lower credit scores?

Finding lenders that accept lower credit scores involves thorough research and utilizing various resources. Online comparison tools, recommendations from mortgage brokers, and direct inquiries with lenders can help you identify suitable options.

Researching mortgage lenders

Start by researching mortgage lenders that specialize in loans for borrowers with lower credit scores. Look for feedback and reviews to gauge their reputation and customer service. Many lenders offer specific programs for low credit scores, enhancing your chances of approval.

Using online comparison tools

Online comparison tools can help you evaluate multiple lenders and their offerings efficiently. These platforms allow you to compare interest rates, fees, and loan types side by side. Utilizing these resources can help you make an informed decision about potential lenders.

Consulting with mortgage brokers

Mortgage brokers can connect you with lenders that cater to your credit profile. They possess industry knowledge and can guide you toward appropriate financing options. Working with a broker can streamline your search and improve your chances of securing a loan.

What should I do if my credit score drops after applying for a mortgage?

If your credit score drops after applying for a mortgage, it’s essential to understand the reasons behind the drop and take action. Communicating with your lender promptly can help you navigate this situation effectively.

Understanding the reasons for the drop

Common reasons for a credit score drop include late payments, increased credit utilization, or new credit inquiries. Reviewing your credit report can help identify the specific factors that impacted your score. Understanding these reasons is crucial for addressing the issue.

Options for addressing the issue

If your credit score drops, consider taking immediate steps to stabilize it. This may include paying down credit card balances, ensuring bills are paid on time, and avoiding new credit inquiries. Taking proactive measures can help mitigate the impact on your mortgage application.

Communicating with lenders

Transparency is vital when dealing with a credit score drop. Communicate with your lender about the situation and provide any necessary documentation. Being upfront can demonstrate your commitment to the loan process and potentially help you find solutions to move forward.

Can I get a mortgage if I have a history of late payments?

Having a history of late payments can complicate your mortgage application, but it does not automatically disqualify you. Lenders will consider the recency and frequency of late payments, along with your overall credit profile.

Impact of late payments on credit score

Late payments can significantly impact your credit score, especially if they occur within the last few years. The more recent the late payment, the greater the effect on your score. Understanding this can help you strategize for improvement before applying for a mortgage.

How lenders view late payments

Lenders typically look at the context of late payments, considering factors such as your overall credit history and current financial situation. If you can demonstrate consistent, timely payments since the late events, lenders may be more lenient in their assessment.

Strategies for improving your standing

To improve your standing after late payments, focus on rebuilding your credit. Make timely payments moving forward and reduce outstanding debts. Additionally, consider disputing any inaccuracies on your credit report related to late payments to help enhance your overall credit profile.

What is a pre-approval and how does it relate to my credit score?

A pre-approval is a lender’s conditional commitment to provide you with a mortgage, based on an initial assessment of your finances, including your credit score. It is a critical step in the home-buying process and can enhance your credibility as a buyer.

Difference between pre-qualification and pre-approval

Pre-qualification is a preliminary assessment based on self-reported financial information, while pre-approval involves a thorough review of your finances by the lender. Pre-approval carries more weight, as it indicates a higher likelihood of obtaining a mortgage.

Importance of pre-approval

Having a pre-approval can provide you with a clearer understanding of your budget and improve your negotiating power when making offers on homes. Sellers often prefer buyers with pre-approval, as it indicates serious intent and financial capability.

How pre-approval affects mortgage terms

Your credit score plays a significant role in determining the terms of your pre-approval. A higher score may secure better interest rates and terms, while a lower score could lead to less favorable conditions. Understanding this relationship is essential as you prepare to apply.

Should I work with a mortgage broker if I have a 620 credit score?

Working with a mortgage broker can be beneficial if you have a credit score of 620. Brokers have access to multiple lenders and can help you navigate the complexities of securing a mortgage with a lower credit score.

Benefits of using a mortgage broker

A mortgage broker can save you time and effort by connecting you with lenders who specialize in low-credit-score financing. They can also provide valuable insights into the mortgage process and help you understand your options, improving your chances of approval.

Finding a reputable broker

When selecting a mortgage broker, look for one with a strong reputation and experience working with clients who have similar credit profiles. Reading reviews and asking for referrals can help you find a broker who prioritizes your best interests.

Costs involved in hiring a broker

While some brokers charge fees for their services, others may be compensated by lenders. Understanding the cost structure is essential to determine if working with a broker fits your budget. Ensure you discuss fees upfront to avoid surprises later in the process.

What are the risks of a variable-rate mortgage for someone with a 620 credit score?

Variable-rate mortgages can pose risks for borrowers with a 620 credit score, primarily due to potential interest rate increases. Understanding the implications of choosing this mortgage type is crucial for making informed decisions.

Understanding variable vs. fixed rates

Variable-rate mortgages have interest rates that fluctuate based on market conditions, while fixed-rate mortgages maintain the same rate throughout the loan term. For someone with a lower credit score, the unpredictability of a variable rate can lead to financial strain if rates rise significantly.

Potential financial implications

Choosing a variable-rate mortgage can result in lower initial payments, but it may lead to higher costs over time if interest rates increase. Borrowers with a 620 credit score may face challenges if their payments rise, making it essential to evaluate your financial readiness before committing.

When a variable rate may be appropriate

A variable-rate mortgage may be suitable in specific situations, such as when you plan to sell or refinance before the rate adjusts. If you can manage the risks and are comfortable with potential fluctuations, this option may offer short-term savings. Assessing your long-term financial goals is crucial when considering this mortgage type.

Can a financial advisor help me secure a mortgage with a low credit score?

A financial advisor can provide valuable guidance in securing a mortgage with a low credit score. They can help you assess your financial situation and create a strategy for improving your creditworthiness and securing favorable mortgage terms.

Role of financial advisors in mortgage planning

Financial advisors can help you understand the mortgage process and your financial options. They can assess your credit profile, recommend strategies for improvement, and guide you in selecting the right mortgage products for your needs. Their expertise can simplify the often-complex mortgage landscape.

Benefits of professional guidance

Working with a financial advisor can provide personalized insights tailored to your unique financial situation. They can help you navigate challenges associated with lower credit scores and offer solutions to improve your overall financial health. Their support can be invaluable in achieving your homeownership goals.

Cost considerations

While financial advisors can charge fees, the investment can lead to significant savings in the long run by helping you secure better mortgage terms. It’s essential to understand the cost structure and weigh it against the potential benefits of their expertise. Discussing fees upfront can help you make an informed decision.

How does a 620 credit score impact my ability to buy a home?

A 620 credit score can impact your ability to buy a home by limiting your mortgage options and increasing costs. Understanding these effects can help you navigate the home-buying process and develop strategies to overcome challenges associated with a lower score.

Understanding the home buying process

The home-buying process involves several steps, including securing financing, finding a property, and completing necessary inspections. A lower credit score can complicate these steps, often requiring additional preparation and diligence to ensure a successful purchase.

Challenges faced by low credit buyers

Buyers with a 620 credit score may face challenges such as higher interest rates, the need for larger down payments, and limited loan options. These factors can make the home-buying process more complex and costly. Being informed and prepared can help mitigate these challenges.

Long-term financial implications

Purchasing a home with a lower credit score may lead to higher overall costs due to increased interest rates and fees. Understanding these long-term financial implications is crucial for making a sound investment. Evaluating your financial readiness and potential for improvement can guide your home-buying decision.

What are the best practices for maintaining a healthy credit score?

Maintaining a healthy credit score involves adopting sound financial practices. Regular monitoring, timely payments, and responsible credit use are essential for sustaining and improving your credit profile.

Regular monitoring of credit reports

Regularly reviewing your credit reports can help you stay informed about your credit status and identify any discrepancies. Utilize free credit monitoring services to keep track of changes and ensure your information is accurate. This proactive approach can help you maintain a healthy credit score.

Timely payment of bills

Making timely payments on all bills is one of the most effective ways to maintain a healthy credit score. Setting up automatic payments or reminders can help ensure you never miss a due date. Consistency in payments builds a positive credit history over time.

Responsible use of credit

Use credit responsibly by keeping your credit utilization ratio low and avoiding unnecessary debt. Aim to use no more than 30% of your available credit, as a lower ratio positively affects your score. Practicing responsible credit management will help you maintain a stable credit profile.

What impact do hard inquiries have on my credit score?

Hard inquiries can negatively impact your credit score, but their effect is often temporary. Understanding how they work and managing your credit applications wisely can help you minimize their impact.

Understanding hard vs. soft inquiries

Hard inquiries occur when a lender checks your credit for lending purposes, while soft inquiries do not affect your score and typically occur during background checks or personal credit checks. Being aware of these differences can help you navigate credit applications more effectively.

Duration of impact on credit score

Hard inquiries can lower your credit score by a few points, but their impact diminishes over time, usually falling off your report after two years. Understanding this timeline can help you plan your credit applications strategically, especially when seeking a mortgage.

How to minimize hard inquiries

Minimize hard inquiries by researching lenders and comparing options before applying. Consider obtaining pre-qualification to gauge your chances of approval without impacting your credit score. Being strategic about your applications can help protect your credit profile.

What should I know about mortgage insurance with a 620 credit score?

Mortgage insurance is often required for borrowers with a credit score of 620, especially for loans with lower down payments. Understanding the types and costs of mortgage insurance can help you budget for homeownership effectively.

Types of mortgage insurance

There are two main types of mortgage insurance: Private Mortgage Insurance (PMI) for conventional loans and FHA mortgage insurance. PMI protects the lender in case of default, while FHA insurance is paid to the government and ensures lender protection. Knowing the differences can help you understand your financial obligations.

Cost implications

The cost of mortgage insurance varies based on the loan type and down payment amount. PMI typically costs between 0.3% to 1.5% of the original loan amount annually, while FHA insurance has both upfront and monthly premiums. Budgeting for these costs is essential when planning your mortgage.

How to avoid mortgage insurance

To avoid mortgage insurance, consider making a larger down payment of 20% or more when purchasing a home. Additionally, certain loan programs may allow you to avoid PMI if you meet specific criteria. Understanding these options can help you save money over the life of your mortgage.

How do I choose the right mortgage for my financial situation?

Choosing the right mortgage involves assessing your financial health, understanding various loan types, and aligning your choice with long-term financial goals. Taking the time to evaluate your options can lead to better mortgage outcomes.

Assessing your financial health

Evaluate your income, expenses, and existing debts to determine how much mortgage you can afford. Consider your credit score, savings, and overall financial goals. A clear understanding of your financial health will guide you in selecting a mortgage that fits your budget.

Considerations for loan types

When selecting a loan type, consider factors such as interest rates, down payment requirements, and loan terms. Weigh the benefits of fixed versus variable rates and explore government-backed options like FHA or VA loans. Understanding these considerations will help you make an informed choice.

Long-term financial goals

Your long-term financial goals should influence your mortgage decision. Consider how long you plan to stay in the home and your potential future income. Aligning your mortgage choice with your financial aspirations will set you up for success in homeownership.

What should I do if I have a 620 credit score but a stable income?

If you have a 620 credit score but a stable income, leverage your income to improve your chances of mortgage approval. Highlighting your financial stability can bolster your application, even with a lower credit score.

Leveraging income for approval

A stable income can counterbalance a lower credit score in the eyes of lenders. Providing documentation of consistent employment and income can help demonstrate your ability to manage mortgage payments. Emphasizing this stability can increase your chances of approval.

Balancing credit factors

While a stable income is beneficial, it’s essential to balance all credit factors in your application. Focus on improving your credit score and maintaining a low debt-to-income ratio. Presenting a well-rounded financial profile will enhance your overall application.

Strategies for negotiation with lenders

When negotiating with lenders, be transparent about your financial situation. Highlight your stable income and commitment to making timely payments. Being proactive and prepared can strengthen your position when discussing loan options and terms.

Mini FAQ

Can I get a mortgage with a 620 credit score? Yes, it is possible, but options may be limited, and interest rates may be higher.

What types of loans can I qualify for? You may qualify for FHA loans and possibly conventional loans, but VA loans are preferable for veterans.

How does my credit score affect mortgage rates? A lower credit score typically results in higher interest rates and costs over the loan’s life.

What can I do if I’m denied a mortgage? Consider improving your credit score, seeking alternative financing options, or consulting a mortgage broker.

Do I need mortgage insurance with a 620 credit score? Yes, mortgage insurance is often required for loans with lower down payments.

What is a pre-approval, and why do I need one? A pre-approval is a lender’s conditional commitment to provide a mortgage, signaling your financial readiness to sellers.

How can I improve my credit score before applying? Focus on paying down debt, correcting errors on credit reports, and establishing new credit responsibly.