Why Your Credit Score & Report Matter When Buying a Home in Maryland
Complete 2025 guide to credit scores, reports, and mortgage approval for Maryland home buyers
Your credit report plays a crucial role in your Maryland home buying journey. It directly impacts your mortgage approval and interest rate.
What Is a Credit Report?
A credit report shows your borrowing history — including loans, credit cards, and payment habits. It’s compiled by credit bureaus: Equifax, Experian, and TransUnion.
How Lenders Use Your Credit Report
- Loan Approval: Evaluates your financial risk.
- Interest Rates: Better credit = better rates.
- Loan Terms: Affects how much and for how long.
- Mortgage Insurance: Poor credit may require PMI.
Understanding Credit Scores
Credit scores range from 300–850. For most first-time buyer programs in Maryland, a score of 640–660 is the typical minimum.
Maryland Home Buyer Credit Score Ranges
Excellent
Best rates & loan options
Good
Competitive terms
Fair
Many options, slightly higher rates
Poor
Needs improvement
- 750+: Excellent – best rates
- 700–749: Good – very competitive
- 640–699: Fair – eligible, with higher rates
- Below 640: Poor – may not qualify
Soft vs. Hard Credit Inquiries
Soft pulls (like checking your own score) don’t hurt your credit. Hard pulls (by a lender) can lower your score slightly. Time multiple mortgage applications within 30 days so they count as one.
Tips to Improve Your Credit Report
- Get free reports at AnnualCreditReport.com.
- Dispute any errors promptly.
- Make on-time payments — they matter most.
- Lower credit card balances.
- Don’t open new accounts before applying.
- Keep older accounts open for history.
How Long Negative Items Stay
Negative marks usually stay on your report for up to 7 years. Their impact lessens over time as you build a positive payment history.
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FAQs for Maryland Buyers
What credit score do I need to buy a house in Maryland?
Most programs require a score of 640–660 minimum. A score of 750+ helps you qualify for the best terms and lowest rates.
How often should I check my credit report?
Check 3–6 months before applying and continue monitoring it for any changes or errors.
Can errors affect mortgage approval?
Yes. Even small errors can lower your score. Dispute inaccuracies before you apply.
How do credit inquiries affect me?
Hard inquiries can lower your score slightly. Try to group mortgage applications in a 30-day window.
Can I get a mortgage with a credit score below 640?
Yes, but it’s harder. Some lenders may accept lower scores with strong income, savings, or a co-signer.
How long before buying a home should I start fixing my credit?
Ideally 6–12 months before applying. This gives you time to dispute errors and raise your score.
Does student loan debt affect mortgage approval?
Yes. Lenders include student loans in your debt-to-income ratio when evaluating your mortgage application.
What’s the fastest way to raise my credit score?
Pay down credit card balances, make all payments on time, and limit hard inquiries before applying.