How long does it take to raise my credit score for a mortgage?

Utilization changes can move your score 20–40 points within one reporting cycle (30–45 days). Bigger changes — clearing collections, aging out late payments — take 6–24 months. Give yourself a 12-month runway if you can.

How much cash do I actually need to buy my first home?

Plan for down payment (3–20%), closing costs (2–5% of the loan), 2–3 months of reserves, and $1,500–$5,000 for the move. On a $400,000 purchase with 5% down, expect roughly $40,000–$45,000 in liquid cash needed.

Can I combine multiple down payment assistance programs?

Yes. Federal, state, county, city, and employer programs frequently stack. Many first-time buyers combine $10K state + $5K county + employer benefits on top of an FHA loan. Our Stack tool matches every layer you qualify for.

What credit score gets the best mortgage rate?

740+ typically unlocks the best conventional rates. 620 is the floor for most conventional loans; 580 for FHA with 3.5% down; 500 for FHA with 10% down. Every 20-point band above 620 usually earns a rate improvement.

What should I NOT do right before applying for a mortgage?

Do not open new credit, finance furniture or appliances, make large unexplained deposits, change jobs, or miss any bill. Lenders re-pull credit and re-verify employment days before closing — any of these can derail the approval.

The Credit & Down Payment Runway Guide

Person planning homebuying finances at a kitchen table with laptop, notebook, and keys

The Runway Mindset: Two Numbers That Decide Everything

Most first-time buyers wait too long, then rush. The runway approach flips that: give yourself 12–24 months, and use the time to move two numbers that decide every mortgage offer you'll ever get.

Number one: your credit score. A 740 borrower pays tens of thousands less over a 30-year loan than a 680 borrower on the same house. Every 20-point band matters.

Number two: liquid cash for the deal — down payment, closing costs, reserves, and moving. Not retirement money, not equity in a car. Cash that's ready.

Everything in this guide is a lever on one of those two numbers. If a habit doesn't move either, cut it.

Pre-approval is what a lender will allow. Readiness is whether the payment still works when life happens. Runway is how you build the second one.

Credit Score Levers Ranked by Impact

Not every credit tip carries the same weight. Rank order for a homebuyer:

Utilization (30% of your score). Get every revolving card below 10% of its limit — ideally, but not zero. If you carry a $2,000 balance on a $5,000 limit card, dropping it below $500 can move your score 20–40 points in a single reporting cycle.
On-time payments (35%). One 30-day late payment can drop a good score 60–100 points and stays for 7 years. Automate minimums on every account. Pay the balance separately.
Age of accounts (15%). Never close your oldest card, even if you barely use it. Set a $10 autopay charge on it so the issuer doesn't close it for inactivity.
Hard inquiries (10%). Every application dings you 3–5 points. Stop applying for anything new 6–12 months before you plan to apply for a mortgage.
Credit mix (10%). Having both revolving (cards) and installment (auto, student loan) helps, but it's not worth taking on debt to manufacture.

👉 Check your real score for $5 before you start — you can't improve what you can't measure.

Common Credit Killers Right Before Closing

Even buyers with strong runways trip in the last 60 days. Every one of these is preventable:

Opening a new credit card. Reduces your average account age and adds an inquiry. Wait until after closing.

Financing furniture or appliances. Retail store credit at 0% APR still shows as new debt. Underwriters re-pull credit days before closing. A new $3,000 line can retrigger the entire approval.

Big cash deposits. Anything the underwriter can't source with a paper trail is treated as a gift or a loan. Document every deposit over $500 with a screenshot and note.

Changing jobs. Even a raise at a new company can pause underwriting for 30+ days while your income is re-verified. Wait until after closing when possible.

Missing a single bill. One 30-day late in the underwriting window can kill the approval outright.

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The Savings Stack: Down Payment, Closing, Reserves, Move

Down payment is the number people talk about. The full cash need is bigger. Plan for four buckets: Down payment: 3–20% of the purchase price depending on loan type. FHA allows 3.5% down at a 580 score. Conventional starts at 3%. VA and USDA can hit 0% for eligible buyers. Closing costs: 2–5% of the loan. On a $400,000 loan, budget $8,000–$20,000. Some can be negotiated onto the seller in slower markets. Reserves: lenders like to see 2 months of PITI (principal + interest + taxes + insurance) in the bank at close. Your own budget should target 3–6 months. Move + settle: $1,500–$5,000 depending on distance, furniture, and immediate repairs. On a $400,000 purchase with 5% down: roughly $20K down + $12K closing + $8K reserves + $3K move = ~$43K liquid.

Stack Every Dollar of Assistance You Qualify For

Down payment assistance is the single most under-used lever in first-time homebuying. Programs stack across four layers: Federal: FHA, VA, USDA — all provide loan-level benefits. First-time buyer tax credits reappear in some years — check the current federal budget. State: nearly every state housing agency offers grants or forgivable second mortgages in the $5,000–$25,000 range. Rules vary by income and county. County + city: local programs often stack on top of state programs. A first-time buyer in a mid-sized metro can frequently combine $10K state + $5K county + $3K city. Employer: many hospitals, universities, and municipalities offer employer-assisted housing benefits for staff. Public-service professionals — teachers, first responders, healthcare — often qualify for extra rewards on top of grants.