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Understanding Credit Scores

Know what lenders look for — and how your credit affects mortgage approval.

Why Your Credit Score Matters

Your credit score is one of the most important factors in qualifying for a mortgage. It influences the types of loan programs you may qualify for, the interest rate you receive, your required down payment, and even how strong your offer appears to sellers.


At Assurance Home Loans, we help Southlake and DFW buyers understand how credit works so you can make informed decisions before applying.

How Credit Scores Work

Credit scores are calculated using several financial behaviors. Understanding these factors makes it easier to prepare for a home purchase — even if you're not ready to apply yet.

1. Payment History

Your record of on-time payments has the biggest influence on your score. Even one late payment can have an impact.

2. Credit Utilization

This is the percentage of available credit you’re using. High balances relative to credit limits can lower your score, even if you make every payment on time.

3. Length of Credit History

The longer your accounts have been open and managed responsibly, the stronger this part of your score becomes.

4. Types of Credit

A healthy mix of accounts — credit cards, auto loans, etc. — can help show responsible use of different credit types.

5. Credit Inquiries

When lenders check your credit with a hard pull, your score may drop slightly. Multiple inquiries in a short period can have a larger impact.

How Your Credit Affects Mortgage Options

Lenders review your credit profile to determine:

  • Which loan programs you qualify for

  • Your interest rate

  • Minimum down payment requirements

  • Mortgage insurance costs

  • Whether additional documentation may be needed

A stronger score often leads to more options and better pricing — which can save thousands over the life of a loan.

Credit Scores & Common Loan Programs

Understanding the role credit plays in each program can help you plan ahead:

  • Conventional Loans: Reward higher scores with lower rates and reduced mortgage insurance.

  • FHA Loans: More flexible for buyers with limited credit history or past challenges.

  • VA Loans: Often provide excellent rates for eligible veterans, even without a perfect score.

  • Jumbo Loans: Typically require strong credit due to loan size and risk.

If you're not sure which program fits your situation, I'm here to walk you through the options.

Tips for Preparing Your Credit Before Applying

While I don’t provide formal credit repair services, I’m always happy to help you understand the credit factors that matter most to lenders. Most buyers find it helpful to:

  • Review a recent credit report

  • Keep balances low relative to limits

  • Avoid opening new accounts right before applying

  • Maintain consistent payment history

  • Avoid large, unexpected purchases during the homebuying process

Even small, thoughtful actions can help you position yourself for success.

Local Guidance You Can Trust

As a Southlake-based mortgage broker serving the DFW Metroplex, I’m here to help you understand how credit fits into the mortgage process — clearly and without pressure.


If you have questions or want to explore your options, I’m just a call or message away.

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Your local Southlake mortgage broker helping DFW buyers move from "thinking about it" to "approved and ready."

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You have a CHOICE when you need mortgage financing, and it is a PRIVILEGE to be considered for the job! We hope to EARN your goodwill and begin a long-time FRIENDSHIP with you.

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