Why Your Credit Score Matters More Than Ever

How it impacts your mortgage and how to improve it.

If you’re planning to buy a home in today’s market, there’s never been a more important time to talk with a Thompson Kane loan officer about your credit score. A few points can mean the difference between thousands of dollars in interest over the life of your loan. And right now, your credit score plays an even bigger role in the rates and loan options we can offer.

Credit Score Importance for Mortgage Approval

Before anything else, your credit score helps determine whether you’ll be approved for a home loan in the first place. Mortgage lenders look at your credit history to assess your ability to repay debt reliably. That’s not new. But in 2025, with interest rates higher than many buyers are used to, qualifying with a strong score matters more than ever.

Generally, the higher your score, the more favorable your loan terms. At Thompson Kane, we can guide you through the minimum score needed for various loan types and help you understand how your current score affects your options.

How Your Credit Score Impacts Your Mortgage Rate

Here’s where the rubber meets the road: your credit score doesn’t just determine approval—it directly affects the interest rate you’re offered. A 40-point swing could change your rate by half a percentage point or more, especially when rates are volatile. That may not sound like much, but over a 30-year loan, it adds up to tens of thousands of dollars.

Even if your score isn’t perfect, our loan experts can explore multiple pathways to help you qualify and keep your monthly payments manageable. Thompson Kane offers tailored loan programs and financial strategies to fit your situation.

Improving Your Score Before You Apply

Think of your credit score as something you can prepare just like your down payment or your budget. With the right guidance, even modest improvements can make a real difference. Before you apply, consider these practical steps:

• Pay down credit card balances below 30% of your credit limit.
• Make all payments on time—no exceptions.
• Hold off on applying for new credit unless absolutely necessary.
• Review your credit reports for errors at AnnualCreditReport.com.

Need help reading your report? A Thompson Kane loan officer can walk you through it and suggest next steps. We’re here to help—not just to close your loan, but to position you for long-term financial strength.

Why It Matters More Today

When interest rates are elevated and home prices are competitive, every dollar counts. A higher credit score gives you more leverage—not just to qualify, but to choose the right loan product for your goals. And with inflation affecting the cost of everything from groceries to gas, securing a better rate means real savings month after month.

That’s why the credit score importance for mortgage decisions isn’t just a detail—it’s a strategic asset. At Thompson Kane, we help buyers use that asset wisely.

If you’re thinking about buying a home this year, don’t wait to check in with us. Connect with a Thompson Kane loan officer today for expert advice on improving your credit and exploring your mortgage options.