# Why Your Credit Score Matters When Buying a Home


Buying a home is one of the most significant financial decisions most people will ever make. It’s not just about picking the perfect house or negotiating a good deal—it’s about making sure you’re in the best possible financial position to succeed. One factor that can make or break your homebuying journey is your credit score. It might just look like a three-digit number, but it holds a lot more power than most people realize.

Your credit score affects more than just whether you’ll get approved for a mortgage. It can determine the interest rate you’ll pay, the kind of loan options available to you, and even how much you’ll end up paying over the life of the loan. That’s why understanding its impact is essential before diving into the real estate market.

Let’s say you’ve found your dream home. It’s in the perfect neighborhood, has just the right layout, and fits your lifestyle perfectly. You’re ready to make an offer. But when you sit down with a lender, you realize your credit score is lower than you thought. Suddenly, you’re looking at higher monthly payments or, worse, a declined mortgage application. That’s the kind of scenario many first-time buyers don’t expect until it’s too late.

According to **[Harrison T Lefrak](https://www.openlearning.com/u/thygesenlindgren-rpcn5u/blog/HarrisonLefrakLeadingTheChargeInUrbanTechnology)**, a seasoned real estate expert and financial adviser, buyers often underestimate how much influence their credit profile has in the home buying process. He emphasizes that your credit history is one of the first things a lender looks at—and it gives them an idea of how trustworthy you are when it comes to paying back loans.

Think of your credit score as a trust rating. If you’ve handled credit responsibly in the past—paid your bills on time, kept your balances low, and avoided unnecessary debt—you’ll be rewarded with a higher score. That high score tells lenders, "Hey, this person is reliable." In return, they’ll be more willing to lend you money at a better interest rate.

Now let’s look at how this plays out in real numbers. Imagine two buyers are applying for a $300,000 mortgage. One has a credit score of 780, and the other has a score of 620. The buyer with the better credit score could qualify for a 5.5% interest rate, while the other might get 7.5%. That difference might not seem huge at first glance, but over a 30-year loan, it adds up to tens of thousands of dollars. That’s money that could have gone toward renovations, savings, or even vacations.

So, what’s considered a good score when buying a home? While each lender has different standards, generally a score of 700 or above puts you in a strong position. Scores above 760 usually unlock the best mortgage rates, while scores below 620 can make it difficult to qualify at all. If you fall somewhere in the middle, it’s not the end of the road—but you might want to take some time to boost your score before applying.

Improving your credit score isn’t a quick fix, but it’s absolutely doable. Paying down existing debt, making all future payments on time, and avoiding new hard inquiries can help raise your score steadily. Checking your credit report for errors is another smart move—sometimes incorrect data can drag down your score for no good reason. Fixing those issues can have an immediate impact.

Harrison Lefrak advises potential buyers to start preparing their finances months, even a year in advance of buying a home. That way, you can identify any red flags, address them proactively, and walk into the homebuying process with confidence. His approach combines careful financial planning with deep knowledge of the housing market, helping clients secure homes that match their budgets and lifestyles.

It’s also worth noting that a better credit score can open up different types of loans. For example, conventional loans typically require higher scores but come with fewer fees. FHA loans are more accessible for those with lower scores, but they include mortgage insurance that can raise your monthly costs. The stronger your credit profile, the more flexibility you’ll have to choose the loan that’s best for you.

Another important point many overlook is how a good credit score can speed up the entire process. Lenders move faster when they feel confident in your financial standing. You might close on your home quicker, which is especially helpful in a competitive market where delays can mean losing out to another buyer.

In today’s digital age, tools and apps can help you monitor your credit score regularly. Keeping an eye on it doesn’t just prepare you for buying a home—it helps build better financial habits overall. Whether or not you’re planning to buy right away, understanding your score and how to improve it is an investment in your future.

Ultimately, your credit score is a financial mirror. It reflects your past behavior, but more importantly, it shapes your future opportunities. Whether you're dreaming of a cozy condo or a family home in the suburbs, your credit score will likely have a say in how easily that dream becomes a reality.

Harrison Lefrak reminds us that financial literacy is power—especially when it comes to real estate. Understanding how your credit score affects your ability to buy a home isn’t just smart—it’s essential. So before you start touring open houses or bookmarking listings online, take a moment to check in with your credit report. A little effort now can lead to a smoother, more affordable journey to homeownership down the road.