Currently, there is a special loan program in place for consumers to receive federally-sponsored financing to allow them to keep their home if they are at risk of foreclosure. The White House enacted the Homeowner Affordability and Stability Plan as a quasi-bailout for consumers, but that doesn’t mean everyone gets a piece - you still have to qualify.

Most Americans know that they should pay their bills on time to help their credit score, but there are many other factors that can dramatically affect your ability to get a loan. Let’s take a look at the 5 most common credit mistakes:

1. Taking it to the limit

Repayment ability is the main factor that lenders are looking at, which is essentially your debt-to-income ratio. If you have a small amount of debt compared to your income, you’re in a much better position to pay off what you owe (quickly). Before you apply for a home loan, try to avoid charging a lot on your credit cards, so that your balance stays low. If you carry a balance month-to-month, try to pay them down as much as possible.

2. Financing major purchases before applying for a home loan

Countless people inevitably ‘kill the deal’ by purchasing a car or taking out a big loan from a finance company or their credit union right before they apply for a home loan. Similar to running up credit card debt, this additional debt can make the difference between getting approved or denied. If at all possible, wait until after your home loan has funded before financing other purchases. Believe it or not, many lenders will run your credit again even after they have approved your loan to find out if you have since applied for more credit. If you are purchasing a home, you will want to wait until the day that your loan has actually closed. If you are refinancing a primary residence, there is a 3-day rescission (cancellation) period, even after you have signed the loan papers before your loan has funded.

3. Procrastinating

When you’re looking to refinance an adjustable rate mortgage (ARM), don’t wait until crunch time. Start preparing at least a year in advance. Most homeowners wait until just 2-3 months before the expiration of their initial rate, and this can really limit the number of available options.

4. Paying off old collections and charge offs

If you’ve had bad debt in your past, it would seem like a responsible idea to clean it off your record before applying for a big purchase. In actuality, this hurts your credit score because it looks like that debt is much more recent in your credit history. Avoid paying these off until after your mortgage closes, or pay them off at least a year in advance of applying for a home loan.

5. Signing up for credit help

Many debt management services advise people to do just the opposite of what they should do in order to qualify for home financing such as closing out accounts in good standing. But these actions often cause their clients credit scores to decline. Since having a higher credit score is very important, especially in today’s market, you want to make sure not to engage in practices that will bring your score down. Also, many lenders don’t look favorably at borrowers who have signed up with these services. It says that you are having trouble managing your finances which is a red flag to lenders.

If you are considering signing up for credit counseling, it may be in your best interest to just cut up or hide (somewhere without easy access) your credit cards, keep your accounts open, and pay down the balances using self control.

By avoiding these mistakes, you can help boost your credit score enough to qualify for lower rates, bigger loans, or both!