To increase your chances of getting approved for a mortgage, you will need a good credit score and clean credit history. Generally, you need a credit score of at least 640 with no major blemishes on your credit report over that past year. A major blemish could include a late payment, missed payment or bankruptcy. Let’s go over a few tips to help you improve your credit prior to applying for a home loan.

Take Care of Late or Missed Payments

If you have any outstanding late or missing payments, be sure to make those payments as soon as possible. Doing so can increase your credit score, and your creditors may be willing to remove information indicating that you didn’t pay a loan as agreed. If you have multiple missed or late payments, start with the most recent ones and work your way back. This is because lenders care more about your recent credit history as opposed to several months or years ago.

Pay Down Existing Debt

If you use more than 30 percent of the available balance on a credit card, you should aim to pay down that balance. As your credit utilization rate goes down, your credit score will go up. It will also give lenders confidence in your ability to make your mortgage payments over the life of the loan. This is because you won’t have to devote as much of your income to repaying those credit card balances.

Work to Increase Your Income

If you can’t pay down your expenses in a timely manner, you can improve your odds of getting a mortgage by increasing your income. This will reduce your debt-to-income ratio, which means that you can qualify for a larger mortgage balance. The best loan officers in Las Vegas can talk more about what that means and how it impacts a mortgage application.