Credit scores
Mortgage underwriting may use specific scoring models and score-selection rules that differ from consumer credit apps.
Credit + mortgage
Credit affects more than whether the loan is approved.
Credit can influence loan eligibility, interest rate, mortgage insurance, required reserves, and the range of programs available.
Payment history
Late payments, collections, charge-offs, and other derogatory events can affect eligibility and underwriting.
Credit utilization
Revolving balances relative to available limits can influence credit scores.
New debt
Opening or financing new debt before closing can change both credit and debt-to-income calculations.
Inquiries
Mortgage shopping is treated differently from unrelated credit inquiries under certain scoring models and timing windows.
Before making changes
Do not close accounts, move balances, or take on new debt solely to improve mortgage qualification without understanding the potential impact.