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Credit scores

What exactly are they, and why do they matter so much?

Your credit score is a quantified “trustworthiness score” based on how likely you are to pay a loan back. In the simplest terms, a high credit score = more trust that you’re good for the dough. Therefore banks will charge you less in interest, since you’re a good bet.

If you’re preparing to buy a home, now is a great time to work on increasing that credit score. Even a slightly higher score may result in a slightly lower interest rate, which will result in BIG savings. How, you say? So glad you asked.

Factors that can increase credit score:

  • Pay all credit card bills on time

  • Build a history of on-time payment

  • Don’t apply for new debt (like buying a car)

  • Keep those credit card balances low!

The minimum credit score for most loans is 620, but the higher the better. During the process, your mortgage lending officer will pull your credit. A hard credit pull is necessary for things like mortgage, credit card, and auto loan applications, whereas a soft credit pull is used for credit report monitoring, pre-approved credit card offers, and employment applications.

For more information on how your credit score impacts your home buying journey, chat with your mortgage loan officer.

Not sure about your current credit score? Check it out at

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