A major credit issue doesn’t mean your dream of homeownership is over. Whether you’ve experienced a job loss, medical emergency, bankruptcy, or unexpected debt, there are proactive steps you can take to rebuild your financial foundation. With the right strategy and a little time, you can recover credit before mortgage lenders review your application.
Start by requesting your credit report from all three major bureaus—Equifax, Experian, and TransUnion. Look closely for any errors or outdated information that may be hurting your score and dispute anything that doesn’t belong. From there, focus on paying off outstanding balances, especially on credit cards, and make sure all future payments are made on time. A solid record of on-time payments is one of the fastest ways to rebuild credit.
Avoid taking on any new debt while you’re working to improve your score, and resist the urge to close old credit cards—keeping those accounts open helps lengthen your credit history. If you’re struggling to manage your debt, consider working with a credit counselor who can help you develop a personalized plan.
It’s important to understand that lenders look for more than just a credit score—they evaluate your overall financial picture, including income stability and debt-to-income ratio. Taking steps to recover credit before mortgage approval shows lenders that you’re financially responsible and ready for the commitment of a home loan.
If you’ve had a credit setback but are eager to move forward, fill out the contact form below. The JJ Mack Team is here to guide you through the recovery process and help you understand what steps to take to qualify for the best possible mortgage.