Your credit score isn’t just a number—it’s a powerful indicator of your financial health that can determine whether you get approved for a mortgage and how much you’ll pay over the life of the loan.

What Is a Credit Score, Really?

Think of your credit score as a financial report card. It ranges from 300 to 850 and gives lenders insight into how responsible you are with credit. According to Zach Bill, understanding this number is crucial if you’re planning to buy a home. "Lenders want to know they can trust you to repay what you borrow," Zach explains.

A higher credit score shows you’ve been managing your debts well. That means paying bills on time, keeping your balances low, and avoiding risky borrowing behavior. It’s not about being perfect—it’s about being consistent.

Why Lenders Care About Your Score

When you apply for a mortgage, lenders use your credit score to help determine two major things:

1. Will you be approved?

2. What interest rate will you qualify for?

"A good credit score doesn’t just help you get approved," Zach says. "It could save you thousands of dollars in interest payments over time."

Most conventional lenders look for a minimum score of 620. But to access the best possible rates and terms, you should aim for a score of 740 or higher.

How to Boost Your Credit Score

Improving your score doesn’t require drastic changes. Zach offers these tried-and-true tips:

• Always pay your bills on time. Payment history is the biggest factor in your score.

• Keep your credit card balances low. High balances can signal risk, even if you make payments on time.

• Avoid applying for too much new credit at once. Each application can cause a small dip in your score.

"These are simple habits, but they add up," Zach emphasizes. "Small improvements in your score can open big doors in the mortgage world."

It’s Not Just About Credit

While credit is a major part of your mortgage application, it’s not the only thing lenders consider. Your income, employment history, and debt-to-income ratio also play a big role.

"Lenders are trying to get the full picture," Zach explains. "They want to know that you’re financially stable and ready to take on a home loan."

The First Step Toward Homeownership

If you’re thinking about buying a home, start by understanding your credit. It’s one of the most important steps you can take to prepare for the mortgage process.

Have questions about how your credit score might impact your mortgage options? Zach Bill is here to help. Reach out or leave a question—you’re not in this alone.

Sources:
Realtor.com, Experian.com, NerdWallet.com, FreddieMac.com