Buying your first home is exciting, it’s a big step toward financial stability, building wealth, and creating a space that’s truly your own. But before you start touring houses or applying for loans, there’s one area that deserves your full attention: your credit.
As a realtor and mortgage professional who works closely with first-time buyers, I’ve seen the same credit mistakes come up time and time again and these missteps can delay your dreams or even cost you the home you really want.
Let’s break down the top three credit mistakes first-time buyers make and what you can do instead to move forward with confidence.
Opening New Credit Right Before or During the Homebuying Process
It can be tempting. You’re excited about your future home and thinking about furnishing it, maybe even upgrading your car. But applying for a new credit card or taking out a loan before closing on your mortgage can sabotage your approval.
Lenders look closely at your debt-to-income ratio and your overall credit behavior. A new inquiry or account, even if it’s small, can reduce your score or signal risk.
What to do instead:
Hold off on opening any new credit accounts until after you close on your home. If you’re unsure whether a financial decision will impact your approval, talk to your lender or better yet, schedule a planning call with me.
Paying Off Collections Without a Strategy
This one often surprises people. You may think paying off an old collection automatically improves your credit but that’s not always the case.
In fact, paying off a collection account can sometimes drop your score in the short term. Why? Because it updates the account status and can make it appear “active” again in the credit scoring models.
What to do instead:
Before paying off any collections, review your credit report with a professional. Sometimes it’s better to negotiate a pay-for-delete agreement or to wait until after your loan closes. Every situation is different, so don’t go it alone.
Not Reviewing Your Credit Report in Advance
Imagine falling in love with a house, only to find out you can’t qualify because of a mistake or outdated item on your credit report. This happens more often than you’d think.
Many first-time buyers don’t pull their credit report until they’re already deep into the home search. But this can lead to surprises like inaccurate late payments, duplicate accounts, or even identity errors.
What to do instead:
Start your homebuying journey by checking all three of your credit reports: Equifax, Experian, and TransUnion. Go through them carefully or let’s review them together on a planning call to catch red flags early.
Ready to Take the First Step Toward Homeownership?
Avoiding these three common credit mistakes can mean the difference between buying your dream home and waiting another year to qualify. And the best part? You don’t have to do this alone.
If you’re ready to create a plan for your credit and your future home, let’s talk!
Schedule your free planning call with me today and let’s map out your personalized path to homeownership.
Sabriyah Callis | NMLS 2537498 | Equal Housing Lender
You’ve got the dream, I’ve got the roadmap. Let’s get you home. 🏡
Share this article with someone who’s thinking about buying their first home, and don’t forget to check out the full video on this topic over on my YouTube channel!
FTC Disclaimer: This is not a sponsored video or article. All opinions are genuinely my own. This post also contains affiliate links and I earn a small commission if you make a purchase after clicking on my links. It does not cost you any extra. Thank you for your continued support to keep the Bri Callis Blog going!
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