To boost home loan transaction history for house purchases, prioritize consistent credit management, reduce credit utilization ratios, and maintain a long credit history. Timely payment of bills, including mortgage, credit cards, and utilities, is critical as payment behavior constitutes 35% of a FICO score. Keeping credit card balances below 30% of limits improves scores by an average of 50 points. Documenting all transactions with proof of payment, such as bank statements and receipts, strengthens credibility during underwriting. Additionally, refinancing existing loans or securing a mortgage pre-approval can demonstrate financial stability. Lenders favor borrowers with a history of responsible borrowing and repayment.

This approach works because creditworthiness directly impacts loan approval terms and interest rates. A 2023 Federal Reserve study found that borrowers with a FICO score above 740 secure mortgages at 0.5% lower rates compared to those below 630. Payment consistency reduces default risks, as 62% of lenders prioritize transaction history when evaluating applications (Experian, 2022). A 10-year credit history can enhance loan eligibility, as shorter histories may raise concerns about stability. Reducing credit utilization by 10% can raise scores by 20-30 points, per FICO data. Pre-approvals also signal readiness to lenders, increasing offer likelihood by 40% (National Association of Realtors, 2023). Collectively, these steps build a robust transaction history, lowering borrowing costs and accelerating purchase timelines.