To buy a house in Texas, understanding the minimum credit score for a Texas mortgage is crucial. While conventional loans often require 620+, FHA loans may go as low as 580 (or even 500 with a larger down payment). Improving your score involves checking for errors, paying down credit card balances, and ensuring timely payments. A higher score translates to better interest rates, saving you money..
What Credit Score Do You Need for a Mortgage in Texas?
Here’s a quick look at what most lenders want to see:
- Conventional Loan: 620+
- FHA Loan: 580+ (sometimes as low as 500 with a bigger down payment)
- VA Loan: No official minimum, but 620+ is common
- USDA Loan: Around 640+
But don’t just aim for good enough. A higher credit score means lower interest rates, which saves you thousands over the life of your loan.
How to Improve Your Credit Score Before Applying for a Mortgage
Fixing your credit doesn’t happen overnight, but if you start now, you can see changes faster than you’d expect.
Check Your Credit Report for Errors
Mistakes happen, and they can drag your score down. Late payments you didn’t make, accounts that aren’t yours, or debts marked as unpaid when you did pay them—it all hurts your score.
Here’s what to do:
- Get your free credit report from AnnualCreditReport.com.
- Check your reports from all three bureaus—Experian, Equifax, and TransUnion.
- If anything looks wrong, dispute it directly with the credit bureau.
Fixing errors could bump your score up faster than anything else.
Pay Down Your Credit Card Balances
Your credit utilization—a fancy way of saying “how much credit you’re using compared to your limit”—should be under 30%. Under 10% is even better.
Got a $10,000 credit limit? Keep your balance under $3,000.
If your balances are high, focus on paying them down fast. A lower utilization ratio can increase your score within a month.
Set Up Automatic Payments to Always Pay On Time
Payment history is 35% of your credit score. One late payment can drop your score by 50-100 points.
Don’t let that happen.
- Set up auto-pay for at least the minimum payment.
- If you’ve missed a payment, call your lender and ask if they can remove the late record. It doesn’t always work, but it’s worth trying.
Don’t Open or Close Too Many Accounts
Opening a new credit card? Expect a small dip in your score because of the hard inquiry. Closing an old card? Your score could drop if it shortens your credit history. Unless you have a major issue, just leave things alone until after you get your mortgage.
Become an Authorized User
Know someone with a great credit score? Ask if they’ll add you as an authorized user on their credit card.
You don’t even have to use the card. Just being on the account—assuming they have a long history and low balance—can boost your score.
Consider a Rapid Rescore
If you need your credit fixed ASAP, a mortgage lender might be able to request a rapid rescore. This isn’t something you can do on your own, but it recalculates your credit score quickly after making improvements.
FAQs
How fast can I improve my credit score before applying for a mortgage?
Depends on what needs to be fixed. Paying down credit cards and fixing errors can show results in 30-60 days. Late payments and collections take longer.
What’s the fastest way to raise my credit score?
Cut down credit card balances, dispute errors, and become an authorized user on someone else’s account.
Does checking my own credit score hurt my score?
Nope. Checking your credit is a soft inquiry, meaning it won’t hurt you. But when a lender checks, that’s a hard inquiry, which can drop your score slightly.
Conclusion
If you’re working on your credit, the minimum credit score for a Texas mortgage is your goal, but a better score saves you money. Get started today.