Give Yourself Some Credit...Why Your Score Matters
Originally published 2014. Updated November 2025.
How Your Credit Score Affects Your Ability to Buy a HomeYour credit score is one of the most influential factors in the homebuying process — yet many buyers aren’t sure how it actually impacts mortgage approval, interest rates, or overall affordability. To help clarify the process, we spoke with Betsy Saxon, Mortgage Loan Officer with First Bank Mortgage in Pooler, GA, who specializes in guiding new homebuyers through credit preparation.
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 each of the three major credit bureaus — TransUnion, Experian, and Equifax — at AnnualCreditReport.com, the only website authorized under federal law.
Your free report includes detailed account information, but not your actual credit score. The score can be purchased for a small fee (usually around $6–$7) directly through the site.
Review your report carefully. Look for:
- Accounts you don’t recognize
- Late payments reported in error
- Collections you were unaware of
- Applications for credit you didn’t make
Any suspicious or inaccurate items should be addressed immediately, as they can make mortgage approval much more difficult.
Why Regular Credit Checks Matter
“Most people don’t check their credit reports as often as they should,” says Saxon. “A yearly review can help you prevent identity theft, catch errors early, and avoid issues that could affect your future home purchase.”
Negative items may remain on your credit report for up to 10 years — another reason early monitoring is essential.
Unexpected Issues That Can Affect Your Credit
Sometimes legitimate debts appear on your report without your knowledge. For example, a medical copay assigned to your health insurance could end up in collections even if someone else — such as an ex-spouse — took the children to the doctor. If your insurance policy is responsible, the collection ultimately affects you.
Situations like this happen more often than expected, and they highlight the importance of checking your credit annually.
How Your Credit Score Affects Mortgage Approval
Lenders evaluate credit scores because they indicate reliability. A higher credit score suggests strong repayment history and lower financial risk, which increases your chances of being approved for a mortgage.
With a lower credit score:
- You may have difficulty securing a loan
- You will likely face higher interest rates
- Your monthly payments and long-term costs may increase
Even outside of mortgage lending, your credit score impacts other expenses. Home and auto insurance premiums may be higher for buyers with lower credit scores.
Credit Monitoring During the Loan Process
When purchasing a home — especially new construction — your credit report is monitored continually until closing. For existing homes, this is usually a 30-day window, but for new construction, monitoring spans the entire build period (typically 4–5 months).
During this time, avoid any actions that could drop your score, including:
- Opening or closing credit cards
- Financing a car, boat, or large purchase
- Running up credit card balances
- Missing or making late payments
Any change could jeopardize your loan approval or delay closing.
Need Guidance on Preparing Your Credit?
Betsy Saxon has helped hundreds of homebuyers strengthen their credit before purchasing the home of their dreams. She offers free guidance to buyers who want to understand or improve their credit before beginning the mortgage process.
If you’re preparing to buy a new home in Savannah, Richmond Hill, or Guyton, explore our Ernest Homes communities and browse our floor plans to find the right fit.
