Buying a home in Grand Rapids or anywhere in West Michigan is a big step, but for many, credit issues stand in the way of getting approved for a mortgage. Whether you’re looking to buy your first home or move into a new one, your credit score plays a huge role in determining what you qualify for, your interest rate, and even the home price range you can consider.
We sat down with Dominic Jackson from Guaranteed Financial Solutions—who has helped countless people in West Michigan take control of their credit and become homeowners—to break down the biggest credit mistakes buyers make, how to improve your score in the next 6-12 months, and what NOT to do before applying for a mortgage.
Why Your Credit Score Matters When Buying a Home
Your credit score isn’t just a number—it directly affects your mortgage approval, interest rate, and even your monthly payment. Lenders use your score to determine how much of a risk you are, and even a small difference in your score can mean paying thousands more (or less) over the life of your loan.
For example, in Grand Rapids, a first-time homebuyer looking at a $250,000 home could see a huge difference in their monthly payment based on their credit score. A higher score means lower interest rates, while a lower score could lead to higher monthly payments—or even a mortgage denial.
✅ Better Score = Lower Interest Rate = More Buying Power
✅ Bad Credit? It Could Delay or Prevent Your Home Purchase
That’s why fixing your credit early—ideally 6 to 12 months before you start house hunting—is one of the smartest moves you can make.
Biggest Credit Mistakes Homebuyers Make
Dominic sees it all the time—people think they’re in a good spot, but small credit mistakes can tank their mortgage approval without them realizing it. Here are some of the biggest mistakes homebuyers in Grand Rapids make when it comes to credit:
❌ Late Payments – Your payment history makes up 35% of your credit score, and even one missed payment can set you back.
❌ High Credit Card Balances – Keeping your credit utilization high (over 30%) can make it look like you’re struggling financially, even if you’re making payments on time.
❌ Applying for New Credit Before Buying a Home – Taking out a car loan, opening new credit cards, or financing furniture before closing can throw off your debt-to-income ratio and lower your credit score.
❌ Closing Credit Cards – Many buyers think closing old credit accounts is a good idea, but it actually hurts your credit utilization and shortens your credit history, both of which lower your score.
How to Improve Your Credit in the Next 6-12 Months
If you plan to buy a home in Grand Rapids, start working on your credit NOW—even if you’re a year or two away from purchasing. Here are some of the best ways to improve your credit before applying for a mortgage:
✔️ Check Your Credit Report – Visit AnnualCreditReport.com to get a free report from all three bureaus (Experian, Equifax, TransUnion). Look for errors, duplicate accounts, or signs of identity theft.
✔️ Make On-Time Payments – Set up auto-pay or reminders to never miss a payment—even one late payment can drop your score.
✔️ Lower Your Credit Utilization – Try to keep your credit card balances below 30% of your limit. Paying down high balances is one of the fastest ways to improve your score.
✔️ Don’t Apply for New Credit – Avoid new credit cards, car loans, or financing deals before buying a home. Every hard inquiry drops your score slightly and adds to your overall debt.
✔️ Ask for a Credit Limit Increase – If your credit is in decent standing, you can request a higher credit limit on existing cards. This can help lower your credit utilization ratio without adding new debt.
✔️ Become an Authorized User – If a family member with good credit adds you as an authorized user on their credit card, you can benefit from their positive payment history—just make sure the card is in good standing!
When Should You Start Working on Your Credit?
Dominic recommends that buyers in Grand Rapids start working on their credit at least 12 months before they plan to buy a home.
- 12-24 months out? Start monitoring your credit, keeping balances low, and making all payments on time.
- 6-12 months out? Address any issues on your report and avoid new credit.
- 3-6 months out? Check with a mortgage lender to see where you stand and what you need to do before applying.
Credit Repair Scams to Avoid
Credit repair is a legitimate process, but unfortunately, there are a lot of scammy companies that just charge a monthly fee without actually helping.
Here’s how to spot the red flags:
🚩 They guarantee to erase negative items – Legitimate credit repair helps dispute errors, but accurate information cannot be erased.
🚩 They ask for upfront payments – Reputable credit repair companies only charge for services already provided.
🚩 They promise a quick fix – Improving your credit takes time—anyone promising overnight results is likely a scam.
Dominic and his team at Guaranteed Financial Solutions focus on education, real credit-building strategies, and long-term financial success.
Need Help Fixing Your Credit?
If you’re feeling overwhelmed or unsure where to start, you’re not alone. Credit can be confusing, and making the wrong move can hurt your home-buying chances.
Dominic’s team offers one-on-one help, step-by-step action plans, and a private Facebook group where you can ask questions and get real guidance.
📍 For more info, visit: Guaranteed Financial Solutions
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Credit can feel like a roadblock, but with the right plan, homeownership in Grand Rapids is within reach. If you’re looking to buy a home in the next year or two, start working on your credit today—your future self will thank you.