Does Your Credit Score Matter When Buying a Home?

Are you thinking about buying a home but worried your credit score isn’t high enough? You might be overestimating what you need!

One of the most common myths about home buying is that you need a perfect credit score to qualify for a mortgage. But the truth? You don’t need an 800+ score to buy a home!

In fact, according to Fannie Mae, only 32% of buyers actually know what credit score lenders look for. That means most people assume the requirements are much higher than they actually are—and that might be holding them back from homeownership.

What is a Credit Score, and Why Does It Matter?

A credit score is a three-digit number that lenders use to determine how responsible you are with borrowed money. It’s based on:

✅ Your history of on-time payments

✅ How much debt you have compared to available credit

✅ How long you’ve had credit accounts open

✅ New credit inquiries and types of credit you use

A higher score can help you qualify for better loan terms, but the great news is that you don’t need a perfect score to qualify for a mortgage! Each loan type has its own minimum credit score requirement, and many buyers find out they already qualify without needing to make major changes.

How to Improve Your Credit Score Before Buying a Home

If you’re looking to boost your score to get better mortgage terms, here are three smart moves you can make right now:

1️ Pay your bills on time.

On-time payments make up a huge part of your credit score. Set up auto-pay or reminders to ensure you never miss a payment.

2️ Pay down outstanding debt.

Credit utilization—how much debt you have compared to your available credit—affects your score. Lower balances improve your credit profile.

3️ Avoid applying for new credit.

New credit inquiries and accounts can temporarily lower your score. If you’re planning to buy a home soon, focus on managing your existing accounts instead.

The Bottom Line: Don’t Let Credit Score Myths Hold You Back!

If you’re unsure where your credit stands, the best thing you can do is talk to a trusted lender. They can check your credit, explain your loan options, and guide you through the process.

I work with top mortgage professionals in Germantown, Collierville, and East Memphis who can help you explore your options and get you one step closer to homeownership!

📩 Thinking about buying? Send me a message today, and let’s start planning your next move!

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