Getting Your Credit in Shape to Get a Mortgage

Louisiana REALTORS® • July 11, 2024

Buying a home is one of the biggest financial commitments you will ever make. Getting a mortgage is a critical stage in this process, and getting a mortgage  with favorable terms depends in large part on your credit score. Lenders use your credit score to determine your creditworthiness, which affects the interest rates and terms of the loans they offer. Preparing your credit before applying for a mortgage can save you hundreds of dollars over the course of the loan.


Understanding Credit Scores

Your credit score is a numerical representation of your creditworthiness, typically ranging from 300 to 850. The higher your score, the better your creditworthiness in the eyes of lenders. Credit scores are calculated based on several factors:


  • Payment History (35%): Your record of on-time payments.
  • Credit Utilization (30%): The amount of credit you're using compared to your credit limits.
  • Length of Credit History (15%): The average age of your credit accounts.
  • Credit Mix (10%): The variety of credit types you have, such as credit cards, loans, and mortgages.
  • New Credit (10%): The number of recent credit inquiries and newly opened accounts.


Steps to Improve Your Credit Score

Review Your Credit Reports

Equifax, Experian, and TransUnion are the three main credit bureaus. Start by acquiring your credit reports from each. Every bureau is required to provide you with a free report once a year at AnnualCreditReport.com. Carefully check these reports for mistakes, such as inaccurate account information or fraudulent activity, and raise any discrepancies that you find.

 

Make Payments On Time

Your credit score is mostly influenced by the payment history you have provided. It's important to always pay your payments on time. For peace of mind, set up automated payments or reminders so you never forget a deadline. Your credit score can be severely impacted by even one late payment.

 

Cut Down on Credit Usage

The ratio of your outstanding credit card balances to your credit limits is known as credit usage. To raise your score, try to keep your utilization below 30%. Reduce your balances or ask for an increase in your credit limit, if at all possible (but avoid piling on extra debt).


Don't Create New Credit Accounts

Opening new credit accounts to increase your available credit may seem appealing, but doing so will temporarily drop your score because of hard queries and a decline in the average age of existing accounts. Create new accounts only when it is absolutely required.

 

Keep Your Old Credit Accounts Open

Keep older accounts open even if you don't use them much since your credit history matters. Your credit score may suffer if you close old accounts because doing so can decrease your credit history and lower your total amount of available credit.


Mix Up Your Credit

A variety of credit kinds, such as retail accounts, installment loans, and credit cards, can all help raise your score. However, only take on additional credit types if you can responsibly manage the payments and it makes sense for your financial condition.

 

Reduce Debt Wisely

Prioritize paying off high-interest debt in order to save money on interest and expedite the reduction of your total debt. To speed up your debt repayment, think about applying the avalanche or snowball methods, which pay off high-interest debt first and smaller balances last, respectively.


Keep an Eye on Your Credit

Use credit monitoring services to keep an eye on your credit record and score. Frequent monitoring keeps you updated on any changes to your credit score and warns you of any unusual activity that might have an impact on it.


Timing Your Mortgage Application

Work on raising your credit score well in advance of when you intend to apply for a mortgage, as it takes time. Try to start half a year or more in advance. You have this window of time to make adjustments and observe how they improve your credit score.

 

It's crucial to improve your credit before applying for a mortgage in order to get the best potential loan conditions. You can raise your creditworthiness and chances of acceptance by being aware of the elements that affect your credit score and taking proactive measures to raise it. Your REALTOR® and your lender can also provide helpful ways to make sure that your credit is in a place to get you the most favorable terms for your mortgage. 

RESOURCES FOR BUYING A HOME

Louisiana Candidates Qualify for November 3 Election

By Louisiana REALTORS® • August 5, 2026
 Candidate qualifying for Louisiana’s November 3 election began Wednesday, August 5, and concludes Friday, August 7. The three-day qualifying period will establish the candidates for all six U.S. House districts, as well as judicial, parish and municipal races across the state. This election cycle includes several changes to Louisiana’s congressional races and election calendar. The state’s U.S. House primaries, originally scheduled for May 16, were canceled following the U.S. Supreme Court’s decision in Louisiana v. Callais. The Louisiana Legislature subsequently adopted a new congressional map that reduced the number of Black-majority congressional districts from two to one. Under the revised election calendar, the November 3 U.S. House contests will use an open primary system. All qualified candidates will appear on the November ballot, regardless of party affiliation. A candidate receiving more than 50% of the vote will be elected. If no candidate receives a majority, the two candidates receiving the most votes will advance to a December 12 runoff. U.S. Senate The November general election will feature Republican nominee U.S. Rep. Julia Letlow and Democratic nominee Jamie Davis. Letlow's Senate campaign has also created an open seat in Louisiana's 5th Congressional District. 5th Congressional District Several candidates have announced campaigns for the 5th Congressional District seat: State Sen. Stewart Cathey State Rep. Michael Echols Louisiana Board of Regents Chair Misti Cordell State Rep. Gabe Firment Cathey, Echols and Firment currently serve in the Louisiana Legislature. Additional candidates may qualify before the deadline on Friday. The 5th District covers portions of northeastern and central Louisiana and extends into the Florida Parishes. 6th Congressional District Congressman Cleo Fields has announced that he will not seek reelection in the newly redrawn 6th Congressional District. Instead, Fields is running in a special election for his former state Senate seat, which became vacant following the death of Sen. Larry Selders of Baton Rouge. The newly drawn 6th Congressional District extends around the Baton Rouge area and includes portions of rural communities surrounding the capital region. State Sen. Rick Edmonds has announced his candidacy. State Sen. Blake Miguez has also been discussed as a potential candidate, although the candidate field will not be finalized until qualifying closes Friday. Federal law requires congressional candidates to reside in the state they seek to represent but does not require them to reside within the specific congressional district. 2nd Congressional District Congressman Troy Carter currently represents the 2nd Congressional District, which extends from the Baton Rouge area toward New Orleans. Under the newly adopted congressional map, the 2nd District remains Louisiana's sole Black-majority congressional district. East Baton Rouge Parish Judiciary All 15 judgeships on the 19th Judicial District Court are scheduled for election following the Legislature's creation of two new judicial election subdistricts. Each subdistrict will elect seven judges, with an additional judgeship elected parishwide. Litigation challenging the new judicial map remains pending. Judicial races are among the contests being monitored by Louisiana REALTORS® and local Political Action Teams. Judicial decisions can have implications for property rights, business activity, litigation and the overall legal environment in Louisiana. Local Elections Voters across Louisiana will also consider candidates for mayors, city and parish councils, school boards, police chiefs and other local offices. While these races typically receive less statewide attention than congressional and statewide contests, local elected officials make decisions affecting land use, zoning, permitting, infrastructure, taxation and housing policy. These issues can directly affect real estate activity and development within local communities. Candidate Lists and Election Information The candidate field will not be final until qualifying closes Friday, August 7. The official list of qualified candidates is available through the Louisiana Secretary of State's Candidate Inquiry portal. The complete election schedule, including key dates for voting, registration and absentee ballots, is available through the Secretary of State's election calendar. For Louisiana REALTORS®, the qualifying period provides an early look at the candidates who will appear on the November ballot and the races that may affect real estate, property rights, development and local communities across the state.

Now Accepting: 2027 At-Large Board of Directors Applications

By Louisiana REALTORS® • August 5, 2026
The Louisiana REALTORS® Board of Directors will elect six (6) LR At-Large Directors at its October 1st meeting. Qualifications and an application for the position can be found below.

Louisiana Department of Insurance Commends Districts Receiving Fire Rate Reductions in First Half of 2026

By Louisiana REALTORS® • August 5, 2026
From the Louisiana Department of Insurance: Insurance Commissioner Tim Temple recognizes fire districts that have received improved fire ratings since last year. Improved fire ratings lead to reduced fire insurance premiums for property owners in the associated area. “Improved fire protection ratings demonstrate the hard work and dedication of fire departments and community leaders. These improvements make homes and communities safer and can reduce fire insurance premiums,” Commissioner Temple said. “Some premium reductions are more than others, but any improvement to the safety and resilience of our communities is a win for everyone.” Fire protection grading is promulgated by the Property Insurance Association of Louisiana (PIAL) and approved by the Commissioner of Insurance. All fire districts are graded on a scale of 1 to 10 by PIAL, with 10 representing no fire protection and 1 representing the best level of protection. The PIAL considers several factors when determining a district’s grading, including the number of dispatchers on duty, the number of firefighters and fire trucks and the availability of water. “I’m extremely proud of the Louisiana Fire Service,” said Department of Public Safety Principal Assistant Chief Bryan J Adams. “They continue to step up, work hard and deliver exceptional service to protect our community. As we partner with them through training and the enrollment support they need to succeed, you can expect continued results like this. Our office is committed to staying at the forefront of collaboration with the Louisiana Fire Service—because we’re truly One Team.” Policyholders in the affected areas should contact their insurance producer if they have questions about how fire rating improvements may affect their fire insurance premiums.  The average annual premium reduction examples below are calculated for a brick masonry home with an HO-3 policy insured for $250,000, with a $500 deductible.
Show More