We get it — buying a new home is one of the most significant decisions you’ll ever make. It’s exciting, maybe a little nerve-wracking and full of questions you didn’t even know to ask. At Rolwes Company we’ve helped a lot of folks navigate this journey and one question always comes up early: “How much does my credit score matter?”
If that’s on your mind, too, you’re not alone. So let’s talk about what your credit score means, how it affects your home buying plans and what you can do right now to set yourself up for success.
Think of your credit score as a snapshot of how you’ve handled money over time. It’s a three-digit number, typically ranging from 300 to 850, that gives lenders a quick sense of your financial trustworthiness.
Scores are based on several things: whether you’ve paid your bills on time, how much of your available credit you’re using, how long you’ve had credit accounts open and if you’ve taken on new debt recently. There’s no need to be an expert in credit algorithms to understand the basics — a higher score usually means you’ve been pretty responsible with your credit, and lenders like to see that.
Here’s the thing: your credit score can play a big role in what kind of mortgage you qualify for and your interest rate. Even a slight difference in score can lead to thousands of dollars more or less over the life of your loan.
Let’s say two buyers are both looking at a $300,000 home. One has excellent credit and lands an interest rate of 6%, while the other has fair credit and gets 7.5%. That extra 1.5% might not seem like a lot, but it could mean hundreds more each month and tens of thousands more over a typical 30 year mortgage. That’s the power of the credit score importance when you’re talking about home buying.
Credit scores are a big piece of the puzzle but not the whole thing. Lenders also want to see how much debt you’re carrying compared to your income, how steady your job history is and whether you’ve saved up anything for a down payment.
If your score isn’t perfect, don’t panic. Many buyers think they need an 800 to qualify, but that’s just not the case. Many times, buyers qualify for solid loans with scores in the 600s. It’s about the full picture, not just one number. What matters most is knowing where you stand and being ready to show lenders you’re serious.
The best time to start thinking about your credit is way before you fall in love with a house. Checking your score early gives you time to make improvements if needed and trust us, that can make a big difference.
Start by paying down credit card balances and making sure you’re staying current on all your bills. Avoid opening new credit accounts or taking on big loans right before applying for a mortgage. Every small step counts. If you’re unsure where to begin, pulling a free credit report from sites like AnnualCreditReport.com can help you spot any issues or errors you might not know about.
You can’t fix a credit score overnight — and that’s okay. Getting started early matters, especially if you’re considering buying a home in the next six to twelve months. Even a few months of consistent on-time payments and lower credit utilization can move the needle in the right direction.
Too many buyers wait until they’ve already found “the one” — the perfect house — only to realize their credit score is holding them back. Preparing in advance means that when the right home comes along, you’re ready to act fast and with confidence.
Understanding your credit score isn’t just about numbers—it’s about preparing yourself to make confident, informed decisions when the time is right. Whether you’re months away or ready to buy now, taking small steps today can make a big impact on your home buying journey.
If you plan to build or buy a new home in the St. Louis region, we’d love to help you take that next step. At Rolwes Company, we’ve guided countless buyers through this process and we’re here to do the same for you. With answers, support and a home building experience you can feel good about from day one. Reach out to our team to learn more or to start your path toward a new home you’ll love.
