Thinking about buying your first home? That’s exciting—but before you start daydreaming about keys and couches, let’s talk about something that can make or break your ability to get approved: your credit. Too many first-time buyers unknowingly make credit mistakes that hurt their chances before they even get started.
At Ramon Espinoza Home Loans, we don’t say “no”—we say “how.” So if you’ve got credit questions, we’ve got straight answers. Let’s walk through the biggest credit mistakes we see and how to steer clear of them.
Don’t Make Big Purchases
It sounds simple, but it’s the #1 mistake we see: someone gets excited about buying a house and suddenly they’re buying a new car, furniture, or a trailer. What happens next? We pull credit or run pre-qualification numbers—and there it is. A big purchase they just made, but the payment hasn’t even hit yet. That debt can mess with your debt-to-income ratio, change your loan approval, or worst-case, kill the deal.
Bottom line: hold off on major purchases until after you close on your home. That new car or dining table can wait.
Don’t Pay Off Credit Cards Without a Strategy
Here’s a common one: a buyer has $5,000 in savings and thinks, “Let me just wipe out this one card with a $5,000 balance.” But if they have four other cards with small balances, they’ve just missed a chance to really boost their score.
Credit scoring is all about how you use credit. Sometimes, paying off small balances across multiple cards instead of one big card makes a bigger impact. That’s why you should talk to someone who understands how credit works before throwing money at it.
Don’t Ignore Collections
We get it—collections are stressful. But ignoring them won’t make them disappear. When a collection agency starts reporting again, it can drag your score down another 50 to 100 points. That kind of drop can take you from being pre-qualifiable to needing credit repair and delaying your home purchase.
Tip: If a collection pops up, bring it to us. We’ll help you figure out the smartest way to handle it without making things worse.
Don’t Pay Off Cards Too Early
If you’re in the habit of paying your credit card bill before the due date—especially before the statement closes—you might be hurting your score without realizing it. When a card reports a $0 balance to the credit bureaus, it looks like you’re not using it. No usage = no credit-building history.
Also, timing is everything. You might pay it off, but if your card reports to the credit bureau after you rack it up again, it could look like you’re carrying high balances—even if you’re paying in full each month.
Quick Recap: What to Avoid
Here’s a quick list of common credit mistakes to stay clear of when preparing to buy your first home:
- Buying large items like cars, furniture, or appliances
- Paying off credit cards without a strategy
- Ignoring collection accounts or letting them sit
- Paying off cards too early and wiping out usage history
- Relying on points programs that cause high balances to report
These mistakes can delay your home-buying journey—or worse, cost you a great loan program or down payment assistance option.
Why This Matters More Than Ever
In today’s market, every point on your credit score counts. Down payment assistance programs, better interest rates, and even qualifying for a loan in general often depend on hitting certain score thresholds. If you’re sitting right on the edge, one wrong move could push you out of the game.
That’s why we offer free credit repair and personalized guidance—so you don’t have to figure this out alone. Whether you’re just starting to think about buying a home or ready to get pre-qualified, we’ll walk you through the credit side first and make sure you’re setting yourself up for success.
Let’s Get You Ready to Buy
If you’re not sure whether your credit is in shape, don’t guess. Let’s take a look together and come up with a strategy that works for you. Your first home might be closer than you think—all it takes is the right plan.
Take the first step today—reach out to the REHL Team Clemente at: clemente@ramonespinozahomeloans.com or Ramon at ramon@ramonespinozahomeloans.com.
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