Credit Score Myths That Could Be Holding You Back
You don’t need perfect credit to buy a home—let’s separate fact from fiction.
At Bryte Home Loans, a division of Canopy Mortgage, we talk to buyers across the country every day who are surprised to learn how flexible mortgage options really are. Many believe their credit score is the ultimate make-or-break factor in getting approved, but that’s simply not the case. If you’ve been holding off on homeownership because of your credit, here’s what you should know.
Myth #1: You Need a 780+ Credit Score to Get Approved
Not true! While a higher score can help you qualify for the lowest rates, you don’t need perfect credit to get a mortgage.
Programs like FHA and VA loans are designed with flexibility in mind and often accept scores in the 600s—sometimes even lower with compensating factors. The key is showing steady income, responsible credit use, and a willingness to learn what options fit your situation best.
Myth #2: Checking Your Credit Will Hurt Your Score
Many potential buyers avoid getting pre-approved because they think it will harm their credit. The truth? A pre-qualification or pre-approval typically starts with a “soft” credit pull, which does not affect your score.
Even when you reach the full application stage, a “hard” pull has only a small and temporary impact. In fact, credit bureaus allow multiple mortgage inquiries within a short window (about 30–45 days) to count as one single inquiry—so you can shop around confidently for the best rate.
Myth #3: You Can’t Buy a Home If You Have Debt
It’s a common misconception that you need to be completely debt-free to buy a home. In reality, lenders look at your debt-to-income ratio (DTI)—the balance between how much you owe versus how much you earn.
As long as your overall DTI fits within lending guidelines, responsible debt management can actually help build your credit history. Things like on-time payments and low credit utilization show lenders that you can handle financial responsibility—exactly what they want to see.
Myth #4: You Should Close Old Credit Cards Before Applying
This one catches a lot of buyers off guard. Closing older credit accounts might seem like a smart move, but it can actually hurt your score by shortening your credit history and reducing your available credit limit.
Instead, focus on keeping your credit utilization low (ideally under 30%) and making consistent, on-time payments. Those two factors play a major role in maintaining or improving your score before applying for a mortgage.
The Bottom Line: Your Credit Is Just One Piece of the Puzzle
Your credit score matters—but it’s far from the only thing lenders look at. At Bryte Home Loans, we take a holistic approach to home financing, reviewing income, assets, credit history, and long-term goals to find a loan program that fits you.
If you’ve been putting off buying a home because you’re worried your credit “isn’t good enough,” it’s time to get the facts. You may have more options than you think.
Contact Bryte Home Loans today to get personalized mortgage advice, review your credit situation, and take the first step toward owning your new home.