How to Build Credit for a Mortgage

Photo by Karolina Grabowska

Buying your first home can seem daunting when you don’t know where to start. Without solid credit, it can seem like all the cards are stacked against you. Lucky for you, building credit for a mortgage does not have to be a complicated process. With dedication, precision, and intelligent choices, you can quickly build credit for a mortgage and be on your way to a new starter home quicker than you think.

We work tirelessly at Starter Homes of Texas to bring affordable homes to all generations in a simple, straightforward process. Below are four tips on how you can begin building your credit for a mortgage!

Check Current Credit Reports

The first step to building credit for a mortgage is to gauge where you currently are. The best way to do this is to sign up for a credit score report from a trusted company like Credit Karma or Experian. These reports will show your credit report history, current credit scores and even offer further tips for raising your credit score. Many of those reports provide in-depth information about boosting your credit score for specific areas like home loans, mortgage payments, and business loans. Following the suggested steps is an excellent start to preparing yourself for a mortgage with your new starter home.

Limit Big Purchases

Credit cards are excellent because they allow you to cover bills without worrying about having the funds initially. But, if you don’t have the funds to cover the payments, they can quickly lower credit scores. The best way to avoid this is to limit credit purchases to the necessities like bills, gas, and groceries. You should also avoid maxing out the credit card each month. You don’t have to limit purchases for pleasure, but it does mean you should watch your spending habits closely. Finding small places to cut out unnecessary purchases can work wonders at steadily raising your credit score.

Get Rid of Debt

A Starter Homes of Texas, we want to make your dreams of owning a home come true. Reducing and eventually eliminating any excessive debt you have will help increase credit for your future mortgage loan. We understand that obstacles like credit debt are sometimes a reality, so we market all of your starter homes as low as the mid $100’s and up to the mid $200’s, making housing achievable for everyone.

Pay Your Bills on Time

Establishing reliable credit comes down to showing that you are a responsible individual who can handle money well. So, paying all of your bills on time is a priority. When you fail to pay your bills on time, you begin to accumulate debt, and your credit score plummets fast. The best way to achieve and maintain solid credit is to stay in good standing and pay your bills on time.

Contact Starter Homes of Texas

With home options in Willis, Conroe, Montgomery, and Huntsville, Starter Homes of Texas has a design layout for families of all shapes and sizes. Affordable homes for all generations is easier than ever with our streamlined build process, custom designs options, and state-of-the-art structures. Trust us with what matters most, finding the perfect home for your family. With good credit practices, you will be ready for your future home purchase.

Give us a call at 281-367-4200 today to learn even more about what we have to offer and get started.

Compare listings

Compare