If you’re planning to apply for a mortgage, developing healthy financial habits can make a big difference. Lenders want to see that you can handle monthly payments and good money management shows you’re a responsible borrower. Here are some simple yet highly effective habits that can help increase your chances of qualifying for the mortgage you want.

1. Pay Your Bills on Time

A history of on-time payments is a sign that you manage money well. Missed/late payments can lower your credit score and make lenders nervous. Set up automatic payments or schedule reminders on your phone so you never forget a due date. Over time, consistent on-time payments boost your credit profile.

2. Keep Your Credit Utilization Low

Credit utilization means the percentage of available credit currently in use. If you have a credit card with a $10,000 limit and you usually carry a $4,000 balance, your utilization is 40%. Most experts suggest keeping your usage below 30%. This practice can help maintain a healthy credit score, which is a key factor in mortgage approval.

3. Build a Cash Reserve

Having savings is very important. Lenders like to see that you have funds set aside to cover your down payment and closing costs. But beyond that, having an emergency fund of three to six months’ worth of expenses can show lenders you can handle financial surprises without missing a mortgage payment.

4. Reduce Your Debt

If you have any debt, consider paying it all before you apply for a mortgage. Paying off debt frees up more of your monthly income and improves your debt-to-income ratio. A lower ratio means you have room in your budget for a house payment, which looks good to lenders.

5. Avoid Large Purchases Before Closing

It’s tempting to buy new furniture or a car when you’re excited about a new home, but making a large purchase can hurt your credit score or change your debt-to-income ratio. It’s best to hold off on any big expenses until after you close on your home.

By following these habits, you’ll show lenders that you can manage your money responsibly. Over time, your efforts will pay off not only when you apply for a mortgage but also in your overall financial health. A good credit profile, stable savings, and low debt can set you on the path to homeownership more quickly than you might expect.