Credit Scores and Mortgage Pre-Approval: What Buyers Need to Know (2026)

Your credit and your pre-approval letter are the foundation of a strong offer. In a competitive market like Greater Boston, sellers want to know you can actually close. This guide explains how credit scores affect your loan, the difference between pre-qualification and pre-approval, the documents lenders ask for, and how to protect your credit until closing day.

Why your credit score matters

Your credit score helps decide whether you qualify, which programs you can use, and the interest rate and mortgage insurance cost you pay. Even a small difference in rate adds up over 30 years.

Minimum scores depend on the program and the lender:

Which score lenders use is also changing. In July 2025, FHFA announced that lenders may use VantageScore 4.0 for loans sold to Fannie Mae and Freddie Mac, in addition to the Classic FICO score that has long been standard. Lenders are adopting it at their own pace, so ask your lender which score they pull.

Pre-qualification vs. pre-approval

A pre-approval is not a final loan approval. The final approval, called the mortgage commitment, comes after the appraisal and full underwriting. Our step-by-step buying guide shows where each step fits.

Documents lenders usually ask for

• Government-issued photo ID for each borrower
• Recent pay stubs, usually covering the last 30 days
• W-2 forms for the last two years
• Federal tax returns for the last two years, especially if you are self-employed, earn commissions or have rental income
• Recent bank and investment statements, usually the last two months, all pages
• Retirement account statements if you will use those funds
• A gift letter and proof of transfer if family is helping with the down payment
• Explanations for large deposits, gaps in work, or past credit problems
• For self-employed buyers: business returns and sometimes a year-to-date profit and loss statement

Each lender and program can ask for more or different documents. If you are self-employed or use an ITIN, read our ITIN and self-employed buyer guide.

How to improve your credit before you apply

1. Check your reports. You can get free reports from Equifax, Experian and TransUnion every week at AnnualCreditReport.com. This free weekly access became permanent in 2023.
2. Dispute errors. Wrong late payments, accounts that are not yours or old debts listed twice can lower your score. Dispute them with the credit bureau in writing.
3. Pay every bill on time. Payment history is one of the most important parts of your score. Set up automatic minimum payments so nothing slips.
4. Lower your credit card balances. Using a smaller share of your available credit usually helps your score.
5. Keep old accounts open. Closing old cards can shorten your credit history and raise your usage ratio.
6. Be patient with collections and past problems. Ask your lender before paying off old collections, since the best approach depends on your situation and the loan program.

If you have little or no credit history, ask lenders about programs that consider other records, such as rent and utility payments. ONE Mortgage, for example, has options for buyers with no credit history.

What can hurt your credit or your loan during the process

From pre-approval until closing, your lender may check your credit and your accounts again. Avoid these common mistakes:

• Opening new credit cards or store accounts, even for a discount
• Financing a car, furniture or appliances
• Missing or paying any bill late
• Co-signing a loan for someone else
• Changing jobs or switching from salary to commission without talking to your lender first
• Making large cash deposits you cannot document
• Moving money between accounts without keeping a clear paper trail

Shopping for a mortgage with several lenders over a short period is normal. Credit scoring models generally treat several mortgage inquiries close together as a single search, so comparing lenders is worth it.

Next steps

1. Pull your free credit reports and fix any errors.
2. Use our affordability calculator to set a target payment. See also how much house you can afford.
3. Talk with two or three lenders, including one that offers Massachusetts programs. Our trusted partners page is a good place to start.
4. Get a written pre-approval before you start making offers.

How Luis can help

Luis and our team can connect you with lenders who explain your credit and pre-approval clearly, in English or Spanish, and help you understand what a strong offer needs. Book a free 15-minute call when you are ready to start.