Credit Scores Affect Your Mortgage Rate

Your credit score plays a big role in what kind of mortgage rate you’ll be offered — and even small changes can make a noticeable difference.

Lenders use your credit score to decide how risky it is to lend to you. A higher score usually means lower risk — and that earns you a lower interest rate. Lower scores may still qualify, but the rate could be higher to offset the risk.

Here’s the impact in real terms: On a 30-year fixed mortgage, a difference of even half a percent in your interest rate can add up to thousands of dollars over the life of the loan. So your score doesn’t just affect whether you’re approved — it affects how much you pay long-term.

The good news? Credit health is something you can improve. Pay bills on time, avoid maxing out credit cards, and keep old accounts open if they’re in good standing. Even small steps can help boost your score over time.

If you’re planning to buy soon, it’s worth checking your credit now so there are no surprises. Sometimes a few quick fixes can bump your score up enough to qualify for a better rate.

Have questions about your credit and how it affects your loan options? I’m happy to help you figure it out before you apply — no pressure, just honest guidance.