How to Improve Your Credit Score Before Buying a House

Your credit score is one of the most important factors in buying a home. It impacts not only whether you qualify for a mortgage but also the interest rate you’ll pay over the life of the loan. Even a small increase in your score can save you thousands of dollars.

At The Freund Group at FIV Realty, we regularly guide buyers in League City, Friendswood, Clear Lake, Houston, and Galveston on how to strengthen their credit before beginning the homebuying process. Here are practical steps to improve your credit score in 2025.

📊 Why Credit Score Matters

Lenders use your score to measure how risky it is to lend you money.

• 620+: Minimum for most conventional loans
  
  
• 580+: Qualifies for FHA loans with 3.5% down
  
  
• 740+: Unlocks the best rates and lowest costs
  
  

👉 A higher score means lower interest rates, smaller monthly payments, and more buying power.

🛠️ Step 1: Check Your Credit Report

Start by pulling a free copy of your credit report at AnnualCreditReport.com. Review it carefully for:

• Errors in your personal information
  
  
• Duplicate accounts
  
  
• Incorrect late payments or collections
  
  

Disputing errors can boost your score quickly.

💳 Step 2: Pay Down Credit Card Balances

Credit utilization (the percentage of available credit you’re using) is a major factor.

• Keep balances below 30% of your credit limit.
  
  
• For the best impact, aim for under 10%.
  
  

Example: If you have a $10,000 credit limit, try to keep balances under $3,000 — ideally closer to $1,000.

📅 Step 3: Pay Bills on Time

Payment history makes up 35% of your score. Even one missed payment can cause a big drop. Set reminders or use autopay to stay on track.

🛡️ Step 4: Avoid New Debt Before Buying

Opening new credit cards or financing a big purchase (like a car) can hurt your score and increase your debt-to-income ratio — both red flags to lenders.

🏦 Step 5: Consider a Secured Credit Card or Credit Builder Loan

If your credit history is limited, these tools can help establish positive payment history and increase your score over time.

📈 Step 6: Don’t Close Old Accounts

Length of credit history matters. Keep older accounts open, even if you don’t use them often. They add stability to your score.

📍 Local Insight

In competitive markets like Friendswood ISD or League City subdivisions, a strong credit score not only improves your financing options but also helps you act quickly when the right home hits the market. Sellers often see buyers with strong pre-approvals as more reliable.

✅ Final Takeaway

Improving your credit score before buying a house is one of the smartest moves you can make. Even small changes — paying down balances, correcting errors, and avoiding new debt — can make a big difference in your buying power.

👉 Thinking about buying in League City, Friendswood, Clear Lake, or Houston?
Contact The Freund Group at FIV Realty today. We’ll connect you with trusted local lenders who can help you prepare financially and guide you to your dream home.