Buying a home is one of the most exciting financial decisions you’ll ever make — and one of the most complex. Whether it’s your first condo, a dream family home, or an investment property, understanding what makes a strong application is key to success. One of the most critical factors in that equation is your credit score.
Your credit score is a three-digit number that tells lenders how likely you are to repay borrowed money. It generally ranges from 300 to 850. While you can technically qualify for some mortgages with a score in the 500s, most conventional mortgage lenders require a score of at least 620. However, to access the best rates and terms, you should aim for a score of 740 or higher. The higher your score, the lower the interest rate you’re likely to get — and that can translate into saving tens of thousands of dollars over the life of your loan.
Let’s say you’re buying a $300,000 home. If your score is above 760, you might qualify for an interest rate around 6.5%, resulting in a monthly payment of about $1,896. But if your score is closer to 620, that rate could jump to 8.1%, raising your payment to over $2,200. Over 30 years, that’s more than $100,000 in additional interest. Improving your score before applying can have a huge payoff. That’s why it’s important to start building good credit early — and if you need a boost, tools like TomoBoost can help by reporting recurring payments you’re already making, like rent or streaming subscriptions, to credit bureaus.
Beyond credit scores, timing can also play a major role in the homebuying process. The real estate market tends to move in seasonal cycles. Spring is usually the most active season, with more homes available and more buyers competing. That means more choice, but also higher prices and pressure. Summer stays competitive, especially for families trying to move before the school year begins. Fall, on the other hand, often provides a balance — fewer buyers, slightly more motivated sellers, and prices that begin to cool down. Winter is the slowest season, and while inventory is lower, it may be the best time to find deals or negotiate favorable terms. If your schedule is flexible, early fall through mid-winter can often be the sweet spot.
It’s also essential to understand what kind of home you’re buying — and how that affects your mortgage. A primary residence is a home you intend to live in most of the year. Lenders typically offer more favorable terms for primary residences, including lower down payments, better rates, and access to government-backed loan programs like FHA or VA loans. Investment properties, on the other hand, are purchased to generate rental income or resale profit. Because these loans carry more risk for lenders, they come with stricter credit requirements, higher interest rates, and larger down payment demands — often 15% to 25%.
While both types of purchases can be great financial moves, they require different strategies, qualifications, and levels of financial preparation. That’s why building strong credit habits is one of the smartest things you can do early on — not just to qualify for a mortgage, but to access better terms and more long-term wealth potential.
At TomoCredit, we believe homeownership should be within reach for more people, especially those who are traditionally underserved by the credit system. If you’re building or rebuilding your credit and planning ahead for a future home purchase, TomoBoost is here to help accelerate your journey. The earlier you start preparing your credit profile, the more confident and empowered you’ll feel when it’s time to make that offer.
Buying a home is about more than qualifying for a loan — it’s about understanding your timing, your financial goals, and the unique opportunity each property type presents. And it all starts with knowing your score, taking action, and thinking long term.