Give Yourself Some Credit...Why Your Score Matters
Originally published 2014. Updated November 2025.
Your credit score is one of the most influential factors in the homebuying process — yet many buyers aren’t sure how it impacts mortgage approval, interest rates, or overall affordability. This article originally included insights from Betsy Saxon, a Mortgage Loan Officer with First Bank Mortgage in Pooler, GA, who provided guidance to homebuyers at the time of the 2014 publication.
Note: Saxon’s information reflects her role at the time and may not represent her current professional status.
Start by Reviewing Your Credit Report
The first step is knowing exactly what’s on your credit report. You can obtain a free report annually from TransUnion, Experian, and Equifax at AnnualCreditReport.com. This is the only website authorized under federal law for free reports.
Your free report includes account details, but not your numerical credit score. Scores can be purchased for a small fee through the site.
Review your report carefully for:
- Accounts you don’t recognize
- Late payments reported in error
- Collections you didn’t know about
- Unauthorized credit inquiries
Disputing errors early can prevent mortgage delays later.
Why Regular Credit Checks Matter
As Saxon noted at the time, “Most people don’t check their credit reports as often as they should.” Annual reviews help prevent identity theft, catch inaccuracies, and avoid issues that could affect your home purchase.
Negative items can remain on your report for up to 10 years — another reason early monitoring matters.
Unexpected Issues That Can Affect Your Credit
Sometimes legitimate debts show up on your report without your knowledge. A common example is a medical bill in collections that was supposed to be covered by insurance — even if someone else took the children to the doctor. If your policy is responsible, the collection still impacts you.
These situations are more common than most buyers realize.
How Your Credit Score Affects Mortgage Approval
Lenders use credit scores to evaluate financial reliability. A higher score signals lower risk and makes approval easier.
With a lower credit score:
- Loan approval may be more difficult
- Interest rates are typically higher
- Monthly payments increase
- Total long-term costs rise
Your credit score can also affect insurance premiums and other financial products.
Credit Monitoring During the Loan Process
When purchasing a home — especially new construction — your credit is monitored continuously until closing. For resale homes this may be 30 days, but for new construction the monitoring period often lasts 4–5 months.
During this time avoid:
- Opening or closing credit cards
- Financing major purchases (cars, boats, furniture)
- Running up credit balances
- Missing payments
Any score changes could disrupt your loan approval.
Need Guidance on Preparing Your Credit?
When this article was originally written, Saxon assisted many buyers in strengthening their credit prior to homeownership. Today, many trusted local lenders offer similar credit-readiness support.
If you’re preparing to buy in Savannah, Richmond Hill, or Guyton, explore our Ernest Homes communities and browse our floor plans to find the right fit.
