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Home Blog When it Comes to Buying a Home, Credit Matters
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Nobody likes lending someone money and not getting paid back! So, when a lender at a bank needs to determine whether an applicant qualifies for a home loan (which is typically A LOT of money), one of the first things they do is check your credit score.

A credit score is a number that is intended to predict the likelihood of you paying back your loan. It’s determined by several things…payment history, debt, outstanding lines of credit, and more. A high score will get you the best possible rate and lower monthly payments, while a low credit score may not prevent you from getting a loan, but it may make it more expensive with a higher interest rate and payments.


What IS a good credit score?

  • A score of 740 or higher is considered excellent credit.
  • A score between 700-739 is considered good credit.
  • Scores between 630-699 are fair credit.
  • And scores of 629 and below are poor credit.


How do I check my credit score?

Visit FICO®, Experian®, Transunion® or Equifax® online, or go to:


How do I improve/maintain my credit score?

  • Make payments, including rent, credit cards and car loans ON TIME.
  • Keep your spending to no more than 30% of your limit on your credit cards.
  • Pay down high-balance credit cards and consider balance transfers to free up credit.
  • Check for any errors on your credit report and work toward fixing them.
  • Don’t take out new loans or credit cards during the home-buying process.


For more information or help with determining how your credit score can impact your home-buying ability, contact our experienced mortgage lenders today!