Homebuyer Credit Readiness Checklist: What to Review Before You Apply

Lenders typically review reports from more than one credit bureau, and each report can contain different information. The FTC notes that you can check your report from each bureau once a week for free at AnnualCreditReport.com.

• Pull and review your reports from Equifax, Experian and TransUnion
• Confirm your name, addresses and other identifying informationInformation that is not yours can be a sign of a mixed file or identity theft.
• Check that every account belongs to you
• Review the balance reported on each account
• Look for late payments you believe are reported inaccurately
• Review any collections and charge-offs
• Check recent hard inquiries
• Note any disputes already in progress

Learn more: Credit Reports hub · Credit Report Review Checklist

Mortgage lenders may use different credit score models than the ones shown in banking and credit-monitoring apps, and mortgage scoring rules are changing in 2026.

• Ask your lender which credit score model it will use for your loan
• Understand that the score in a consumer app may differ from your mortgage score
• Read our lesson on the credit scores used for mortgages
• Do not assume FICO Score 8 is automatically your mortgage score

Learn more: Credit Scores Used for Mortgages · Credit Scores hub · What Mortgage Lenders Review

Credit utilization compares the balances reported on your revolving accounts with your credit limits. Scoring models consider it, but there is no single percentage that guarantees a particular score.

• Review the balance each card issuer is reporting
• Confirm each credit limit is reported correctly
• Understand how utilization is calculated, overall and per card
• Ask your lender before using savings to pay down balancesCash you plan to use for a down payment, closing costs or reserves may matter to your loan.

Learn more: How Credit Utilization Works

Payment history is an important part of credit scoring. How a recent late payment affects a mortgage application can vary by lender, loan program and the details of your file.

• List any late payments reported in the last few years
• Check whether each late payment is reported accurately — dates, amounts and status
• Ask your lender how any recent late payment may be viewed for your loan program

Learn more: How Late Payments Can Impact Your Credit

Collections and charge-offs can affect both your scores and how a lender reviews your file. Lenders and programs may treat them differently, so the right next step depends on the account and the lender.

• Identify every collection account
• Identify every charge-off
• Verify ownership, balances and key dates for each one
• Understand whether each account is paid, unpaid, disputed or inaccurate
• Ask your lender how specific accounts may affect underwriting before you pay, settle or dispute them

If information is inaccurate, you can dispute it with the credit bureau and with the company that reported it. Accurate negative information is not something to dispute. If you are considering negotiating with a collector, read how pay-for-delete requests work and talk with your lender first.

Learn more: Collections & Charge-Offs hub · Negative Items Before a Mortgage

Some loan programs have waiting periods after major derogatory events, and those periods differ by event type and program. For example, Fannie Mae’s Selling Guide sets different waiting periods for different events. Your lender can tell you what applies to you.

• Identify any bankruptcy, foreclosure, short sale, deed-in-lieu or repossession in your history
• Write down the key dates — filing, discharge, dismissal, completion or sale
• Ask your lender or program representative which waiting periods apply to you
• Review how long negative information may stay on a credit report

Learn more: How Long Negative Information May Stay · Rebuilding Credit After Bankruptcy

A hard inquiry may affect a score, but the effect is not the same for everyone. Scoring models generally treat several mortgage inquiries made within a limited shopping window as a single inquiry; the length of that window depends on the scoring model.

• Review the hard inquiries on each report and confirm you recognize them
• Understand how mortgage rate shopping works
• Avoid applying for unrelated new credit during the mortgage process without discussing it with your lender

Learn more: Hard Inquiries and Mortgage Rate Shopping

The CFPB describes your debt-to-income ratio (DTI) as all your monthly debt payments divided by your gross monthly income. Lenders calculate DTI using their own underwriting rules and the requirements of the loan program, so the debts and payment amounts they count may differ from your own list.

• List your monthly debt payments — loans, credit cards and other obligations
• Understand that your lender calculates DTI using its own rules
• Ask which debts and payment amounts your lender will count

Learn more: Debt-to-Income Ratio for a Mortgage

This list covers credit-related items only. Your lender will tell you what else it needs for your application.

• Recent copies of your credit reports
• Documents that support any corrections you have requested
• Recent statements for accounts you have questions about
• Proof that reporting errors were corrected, if applicable
• Information about any disputes still pending
• Your list of questions for the lender

• Which credit score model are you using?
• Which bureau reports are you reviewing?
• Are there any accounts you want me to address before applying?
• Could paying down a balance affect my underwriting or cash for closing?
• Should I avoid opening or closing accounts right now?
• Would a rapid rescore be appropriate in my situation?
• Are there program-specific rules I should know about?

Your lender — not Maximum Score Builders — makes the underwriting decision. If a rescore comes up, read Rapid Rescore: What It Is and Who Can Request It.