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Your credit score plays a major role in the homebuying process, especially for first-time buyers and Veterans using programs like VA Loans or FHA Loans. But most people aren’t sure how that number is actually created.
At Kalamazoo Mortgage, we work with buyers every day who are improving, rebuilding, or optimizing their credit so they can secure a home with confidence. This guide breaks down the five key parts of a credit score and how each one impacts your long-term financial picture.
This is the largest piece of your score and reflects how consistently you’ve paid your bills over time. Late payments, missed payments, and delinquencies all reduce this portion, while a strong pattern of on-time payments builds trust with lenders.
Utilization measures how much of your available credit you’re using. Keeping balances low—preferably under 30 percent, and ideally under 10 percent—can make a meaningful difference.
A long credit history helps your score, which is why closing long-standing accounts can sometimes do more harm than good.
Every new account or hard inquiry can temporarily lower your score. This is why it’s important to check with our team before opening anything new while preparing to buy a home.
A healthy combination of revolving credit (credit cards) and installment loans (auto loans, student loans) shows lenders that you can handle multiple types of debt responsibly.
Strong credit doesn’t just influence whether you’re approved—it can affect your loan structure and long-term financial options. For example, Michigan buyers may qualify for first-time homebuyer programs that offer additional flexibility, or Veterans may access powerful benefits through VA financing.
Even small adjustments to your credit profile can unlock better options. And you never need to figure this out alone—our team can help you understand what steps matter most for your goals.
As a veteran-owned lender focused on first-time buyers and community education, we’re committed to empowering you with clear guidance. We offer:
• Personalized review of your full credit profile
• Actionable, mortgage-safe improvement strategies
• Dedicated support from application through closing
• Resources through our Homebuyer Education and Credit-Improvement consultations
You’re not a number here—you’re a neighbor, and our job is to help you move forward with confidence.
Whether you’re planning to buy your first home, upgrade, or explore new opportunities using your equity, understanding your credit is the perfect place to start.
Apply anytime: http://www.kalamazoomortgage.com/apply
Call us: (269) 364-6000
Reach out to a Game Plan specialist.
We’re here to guide you every step of the way.