June is National Homeownership Month, a time to celebrate the dream of owning a home and offer guidance to those preparing to take that important step. One of the most impactful things you can do right now is to begin building or improving your credit. If you plan to purchase a home in the next 6 to 12 months, the work you do today could make a major difference in the loan terms you receive later.

Check your credit report first. Before anything else, it is important to know where you stand. You can access your credit reports for free at AnnualCreditReport.com. Review them carefully for any errors or outdated information. Disputing mistakes, like incorrect late payment or a paid-off account still listed as open, can quickly improve your score. Knowing what is on your report also gives you a starting point to track your progress.

Prioritize on-time payments. Your payment history makes up the largest portion of your credit score. Even a single missed payment can significantly lower your score and stay on your report for years. Set reminders or use auto-pay features to ensure you never miss a due date. If you are behind on any bills, getting caught up and staying current will help your credit rebound over time.

Manage your credit utilization. This refers to how much of your available credit you are using at any given time. Keeping your usage under 30 percent of your total credit limit shows lenders that you are using credit responsibly. If you are carrying balances on your credit cards, paying them down can make a quick and measurable impact on your score.

Consider building new credit responsibly. If your credit history is thin, opening a secured credit card or becoming an authorized user on a trusted family member’s account can help. Just be sure any new accounts are used wisely. Keep balances low and make all payments on time. Avoid opening too many new lines of credit at once, as this can temporarily reduce your score due to multiple hard inquiries.

Avoid making big financial changes too close to applying for a mortgage. Taking on a large new loan or suddenly closing older credit cards can shift your credit profile in ways that could be harmful. Lenders like to see consistency. Keeping your financial behavior steady and predictable in the months before applying for a mortgage is a smart move.

Use National Homeownership Month as your motivation to take action. This month is about more than just recognizing current homeowners. It is about helping future buyers like you start the journey with confidence. Whether you are six months or a year away from applying for a mortgage, building credit now puts you in a stronger position.

If you have questions or want help reviewing your credit situation, we are here to support you. Let’s turn this month into the beginning of your path to homeownership.