Credit Score for Mortgage: What to Know Before You Apply

When it comes to applying for a mortgage, most people know how much they earn, how much they’ve saved, and what kind of home they’re looking for. But one part of the process that often feels like a black box is understanding your credit score for mortgage approval.

Many of our clients aren’t sure what their score is, or what it means. They’re worried about that one missed phone bill, a gas card that went over the limit, or whether checking their credit could hurt their chances.

Let’s break down what you need to know.

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What Lenders Look At

Your credit score (also called your Beacon score) isn’t the whole story. You might see a number on your bank’s app, but lenders don’t use that number when reviewing your mortgage application. Instead, they pull your credit report from agencies like Equifax or TransUnion.

A high score, like 720, looks good on paper. But if you’ve only had a credit card for six months, lenders may still see you as a higher risk. Why? Because a strong credit history isn’t just about the number. It’s about how long you’ve had credit, how much credit you have access to, how much you’re using, and whether you’ve handled it responsibly.

When a Low Score Doesn’t Mean “No”

Life happens. If your score is lower because of a job loss, divorce, or medical emergency, some lenders will take that into account. There are still mortgage options if you’re putting 20% or more down, even with a lower score.

But lenders will want to understand your situation. They need to know whether your low score reflects a one-time issue or a pattern of poor credit management.

Should You Be Worried About Pulling Your Credit Score for the Mortgage Process?

Not necessarily. One common myth is that checking your credit will automatically hurt your score. The truth? Occasional inquiries won’t damage your score—unless you’re constantly applying for new credit and racking up debt.

If you’re just starting to explore buying a home, it’s smart to have your credit pulled early. That way, if there are any issues, there’s time to address them before you’re ready to apply. Plus, understanding your credit profile can help you make more informed decisions and avoid surprises down the line. A mortgage broker can help you review your report and explain what matters most, like how long you’ve had credit, your usage rate, and payment habits. With the right strategy, even small changes can make a big difference. A few months of improved habits could mean the difference between approval and rejection, or thousands saved in interest. Don’t wait until the last minute to find out where you stand.

Don’t Wait Until You’re Ready to Buy

If you’re serious about getting a mortgage, don’t wait until you find the perfect home to check your credit. Talk to a mortgage broker early in the process. They can review your report, explain what lenders are looking for, and even offer advice on how to improve your score if needed.

‘Credit’ might be a word that unsettles you, but with the right advice, it doesn’t have to be.

Have questions about your credit and mortgage eligibility? Contact us today. We can make the entire process a lot less scary.