Why Your Credit Score Matters When Buying a Home- A First-Time Homebuyer’s Guide 

What’s the most important thing you need to buy your first home? Cash? Sure, that helps. But one of the biggest hurdles is your credit score—especially if you’re planning to get a mortgage. 

In this guide, we’ll break down what a credit score is, how it impacts the homebuying process, how to check and improve yours, and smart tips to help you along the way. 

💳 What Is a Credit Score, Anyway? 

A credit score is a three-digit number (between 300 and 850) that shows how likely you are to repay borrowed money. The higher your score, the better your chances of getting approved for loans, credit cards, and—yes—even a mortgage. 

Here’s what affects your score: 

• 35% – Payment History: Pay on time. Every time. 

• 30% – Credit Use: Keep your balances low. 

• 15% – Credit Age: A longer credit history = better score. 

• 10% – New Credit & Inquiries: Too many new accounts or hard pulls can ding your score. 

• 10% – Credit Mix: A variety of credit types helps. 

Your score is calculated by the three major credit bureaus: Experian, Equifax, and TransUnion. 

✨Reminder: Checking your own credit score is FREE and will not affect your credit.

👉 To learn more about credit scores, check out our article: Building Credit Like a Boss

🏡 How Your Credit Score Affects Buying a Home 

Your credit score directly affects the interest rate you’ll get on your mortgage—and that can mean big savings over the life of your loan. 

Most home loans (like FHA or conventional loans) have minimum credit score requirements, and a higher score could even help lower your down payment. 

📉 What If Your Credit Score Is Low? 

A low credit score doesn’t automatically disqualify you, but it can limit your options: 

• You might qualify for certain loan types. 

• You may have to pay private mortgage insurance (PMI). 

• Your interest rate may be higher, which impacts your monthly payment. 

Your best move? Get pre-approved and talk to an Honor Mortgage Lender who can walk you through your options and help improve your credit profile before you buy. 

🔍 How to Check (and Improve) Your Score 

You can check your score using the Honor app or by visiting the credit bureaus directly. Review your reports for errors, and if you find any, dispute them right away. 

Tips to boost your score: 

• Pay all your bills on time 

• Pay down credit card balances 

• Avoid opening new credit lines before applying for a mortgage 

🧠 Pro Tips for First-Time Buyers 

Once you’ve checked your score and cleaned up your credit report, here’s what to do next: 

• Get pre-approved for a mortgage. It shows sellers you’re serious and ready to go. 

• Talk to a local Honor Mortgage Lender—they’re available across all our markets in Southwest Michigan and the U.P. 

• Team up with a real estate agent who understands first-time buyers. (We can help connect you!) 

• If your credit needs work, our team can help find credit-friendly loan programs like FHA loans to get you started. 

🏁 Why It Pays to Care 

Your credit score matters—a lot. Start building it now so you’re ready when the perfect home comes along. 

✅ Ready to get started? Connect with one of our friendly Mortgage Lenders today. We’re here to answer your questions, explore your options, and help you find a loan that fits your budget (and your dream home).