How Your Credit Score Impacts Mortgage Approval

July 2025 | How Your Credit Score Impacts Mortgage Approval

If you’re thinking about buying a home, you might be wondering how your credit score influences the process. The short answer: your credit score is one of the most important factors lenders consider when it comes to mortgage approval, as well as the rates and loan options you’ll be offered.

Why does your credit score matter so much?

Lenders use your score to assess how risky it might be to lend to you. A higher score tells lenders you’re likely to make payments on time, which could help you qualify for better rates and even lower your monthly payment. On the other hand, a lower score may limit your options or mean higher interest costs over the life of your mortgage.

The great news is your credit isn’t set in stone.

Even if your score isn’t where you want it today, there are practical steps you can take to improve it for the future. Here are a few quick, actionable tips:

🕑Pay bills on time. Payment history accounts for a big chunk of your score. Set reminders or use automatic payments to avoid missing a due date.

📉 Keep your balances low. Try to use less than 30% of your available credit. Lower balances can boost your score and make you look more appealing to lenders.

🚫Limit new credit applications. Every time you apply for new credit, it can cause a small dip in your score. Avoid taking on new debt.

Remember, making even small adjustments in your financial habits can make a big difference when you’re ready to apply for a mortgage. You don’t need a perfect credit score—just a little progress can open doors to more options and better deals.

If you’re curious where you stand or have questions about your credit and how it plays into your homeownership goals, I’m here to help. Let’s chat and make sure you feel confident as you move forward on your home buying journey!