Your credit score can open doors, or slam them shut. But when it comes to buying a home, too many people assume one bad score means game over. That’s not always the case.

Whether you’re a first-time buyer, self-employed, or looking to refinance, your credit score is just one piece of the puzzle. And if it’s not where you want it to be, there are simple steps you can take to raise it fast.

Let’s unpack how credit scores actually affect mortgage approval and what you can start doing today to improve yours.

What Is a Credit Score and Why It Matters

Your credit score is a three-digit number that shows lenders how likely you are to repay debt.
Most lenders use the FICO score, which ranges from 300 to 850. The higher the score, the lower the risk in the eyes of the lender.

When applying for a mortgage, your score helps determine:

• Whether you’re approved
• What interest rate you get
• What loan programs you qualify for
• Whether you’ll need mortgage insurance

Typical Score Ranges for Home Loans

Here’s a quick breakdown of what lenders generally look for:

• 740+ = Excellent credit (best rates, more loan options)
• 700–739 = Good credit (still great rates, most programs open)
• 660–699 = Fair credit (some limits, higher interest)
• 620–659 = Borderline (FHA and some conventional may apply)
• Below 620 = Challenging, but not impossible—especially with a broker

Important: Different lenders have different thresholds. VA and FHA loans, for example, are much more flexible.

How Credit Scores Affect Self-Employed Borrowers

If you’re self-employed, credit becomes even more important.
Banks already view self-employment as “riskier” (even when it’s not), so a strong score can offset unconventional income.

The good news? Brokers like Shannon know how to work with creative income and imperfect credit. But improving your score gives you more leverage.

5 Fast Tips to Improve Your Credit Before You Apply

1. Pay Down Credit Cards Below 30%

Your credit utilization ratio (how much credit you’re using vs. your limits) is a big deal.
If you’re maxed out, even if you pay on time, your score can take a hit.

2. Don’t Close Old Accounts

Length of credit history matters. Keep older accounts open, even if you don’t use them regularly.

3. Check Your Credit Reports for Errors

Mistakes happen. You can dispute incorrect accounts, late payments, or balances with the credit bureaus.

4. Avoid Big New Purchases

Hold off on buying that car or financing furniture before your mortgage closes. New inquiries or debts can shift your score.

5. Set Payment Reminders

Payment history is the #1 factor in your score. Just one late payment can cause a drop, don’t let it happen.

What If Your Score Still Isn’t Great?

You don’t need an 800 to get a mortgage.

• VA loans often work with scores as low as 580
• FHA loans allow for flexibility and lower down payments
• Bank statement loans for self-employed buyers look at income first

The key is knowing which program fits your situation—and working with a broker who has access to them all.

Credit Scores Matter, But They’re Not Everything

Yes, your credit score plays a role in your mortgage approval.
But it’s not the whole story—and it can always be improved.

Whether your score is excellent, fair, or in progress, the smartest thing you can do is talk with a mortgage expert who can show you your options and create a plan. Shannon Christenot specializes in helping buyers navigate this exact process, especially if you’re self-employed or feel like the banks keep saying no.