Mortgage Basics · Prepare at your pace
Credit readiness.
Understand where you stand.
Choose a useful next step.
Understand your reports and scores, explore what your credit may mean for a mortgage, and get practical guidance from an AMCFG loan officer.
01 / Understand the information
Your report is the history. Your score is a calculation.
- Credit report
- A record of credit accounts, balances, payment history, and other reported information about your borrowing.
- Credit score
- A number calculated from credit-report information. It helps lenders assess repayment risk and can affect eligibility and pricing.
FICO and VantageScore: different ways to calculate a score.
- FICO
A family of models used for mortgages, auto loans, and credit cards. Classic mortgage versions include FICO Score 2, 4, and 5; a FICO Score 8 in a banking app may differ. Auto and card lenders may use versions specific to those products.
FICO: versions & their uses ↗- VantageScore
Another family used by lenders and credit-monitoring services. Different versions serve different credit products, so check which model your app or lender provides.
VantageScore: models & uses ↗
When tracking your progress: An app score can help you follow changes. Check the model, credit bureau, and date; a different score does not necessarily mean either one is wrong. CFPB: why scores differ ↗
When applying for a mortgage: The lender uses a model accepted for that loan. As of September 2026, eligible Fannie Mae and Freddie Mac loans can use Classic FICO or VantageScore 4.0. Other programs have their own requirements. Ask your AMCFG loan officer which score will be used for your application. FHFA: mortgage credit-score models ↗
02 / A shared point of reference
Put a score in context.
Use these general FICO classifications when talking with AMCFG about your credit. They apply to base FICO scores on the 300–850 scale. Other models may use different categories.
| Score | Classification |
|---|---|
| 300–579 | Poor |
| 580–669 | Fair |
| 670–739 | Good |
| 740–799 | Very good |
| 800–850 | Exceptional |
These labels are an educational reference. Mortgage approval and pricing follow separate lender and program requirements.
FICO: score ranges & lender requirements ↗03 / Review & correct
Start with what is actually reported.
Get reports from all three bureaus.
Review Equifax, Experian, and TransUnion because their information can differ. Free reports are available through AnnualCreditReport.com, the official authorized site. A credit report is not the same as a credit score.
Check the details, not just the number.
Look for accounts you don’t recognize, incorrect balances or payment status, duplicate debts, and information that belongs to someone else. Compare entries with your own records.
FTC: reviewing your credit information ↗Dispute errors and keep the records.
Contact the bureau showing the error and the company that supplied the information. Explain what is wrong, include copies of supporting documents, and keep the response. Review the outcome and updated report.
CFPB: dispute steps & sample letters ↗
04 / Build consistency
Focus on habits you can maintain.
- Make payments on time
- Use reminders or automatic payments if helpful, and keep enough money available. Payment history matters to credit scoring.
- Manage card balances
- Keep balances low relative to available limits. You do not need to carry an interest-bearing balance to build credit.
- Apply for new credit thoughtfully
- New cards, financing purchases, or other loans can add inquiries and debt. Discuss planned changes before or during a mortgage application.
- Consider account changes carefully
- Closing a card can reduce available credit and increase the share you are using. It is not an automatic way to improve a score.
AMCFG can help you plan improvements. A loan officer can provide general guidance on credit improvement and how planned changes may affect your mortgage application. Discuss priorities such as payment consistency, card balances, and report errors. Results and timing vary.
05 / Look at the whole application
A mortgage decision involves more than credit.
Lenders also review income, debts, assets, and the property. Requirements vary by loan and lender; a score alone does not establish approval or what you can comfortably afford.
CFPB: what a preapproval considers ↗Where debt-to-income fits
Debt-to-income, or DTI, compares monthly debt payments with gross monthly income—the amount before taxes and deductions. It is a separate measure from a credit score.
Monthly debt payments divided by gross monthly income
Ask which payments and income count for your loan. DTI limits vary, and the ratio does not capture every household expense.
CFPB: understanding debt-to-income ↗Have these ready for the conversation.
- Your homebuying or refinance goals and timing.
- Questions about your reports, debts, or recent changes.
- Income information, account statements, and the source of funds for closing.
Document needs vary, especially with self-employment or other income sources. Ask for a checklist suited to your situation and the secure way to provide documents.
CFPB: preparing application documents ↗06 / A few practical answers
Common questions.
Does a lower score automatically mean I cannot get a mortgage?
No. A lower score can narrow your choices, but it does not automatically rule out every program. Your AMCFG loan officer can help you understand lender requirements and how your income, debts, assets, and credit history fit together.
CFPB: credit & mortgage eligibility ↗What is the difference between a hard and soft credit inquiry?
A soft inquiry includes checking your own report or an existing lender reviewing an account. It does not affect your credit scores.
A hard inquiry usually happens when you apply for new credit, including a mortgage. It can affect your scores and is visible to other lenders.
Before a prequalification or preapproval, ask your AMCFG loan officer which type of check is planned.
CFPB: hard & soft inquiries ↗Can someone guarantee a quick score increase?
Be cautious about promises of a quick fix or removal of accurate, current negative information. You can dispute errors yourself for free. Building a stronger credit history takes time, and results depend on your circumstances.
FTC: credit repair facts ↗