So you’re ready to buy a house, but your credit score is in the gutter. Experts say don’t put the cart before the horse when you’re preparing to purchase — and that means getting your credit in order.
Renters tend to be stuck in a month-to-month mindset when it’s time to buy a home. The lease is up in 60 days, so they start shopping pre-approvals.
“At that time, it may be too late to do anything for your credit report,” said Coleman Miller, a Tulsa-based producing branch manager at Rate Incorporated. “I think it’s one of those things of looking out six months or more.”
For buyers to get the best insurance premium and interest rate, Miller recommends waiting at least six months while whittling away at their debt. The savings, he adds, can be substantial when people have more time to pay down debt and improve their credit score.
Whether directly or indirectly, what you pay for a home looks differently around Tulsa. Beyond interest rates, insurance premiums and the actual cost of the home itself, other factors like credit score, debt, age of the home and its location influence your mortgage.
Credit scores drive insurance premiums more than you may realize. According to a 2025 report published by a University of Minnesota researcher, homeowners with a medium credit score (around 741) pay around $792 more on a premium than those with high credit scores (above 823) for the same policy. Homeowners with lower credit scores (around 628) pay around $1,996 more.
Insurance companies use credit scores to predict the likelihood of filing a claim, according to the university’s research. The Flyer reached out to several insurance companies in Oklahoma to ask how they use credit scores. We were told that information is proprietary and protected, but credit scores are one of several factors used in underwriting and pricing, according to Scott Holeman, a spokesman for the industry group Insurance Information Institute.
Senate Bill 1435 would have stopped credit scores from being used to calculate home and auto insurance premiums in Oklahoma, but it was killed before the end of this year’s legislative session.
Oklahoma has the highest average cost of home insurance in the nation at $5,298 — 121.2% above the national average, according to a report by online lending marketplace LendingTree.
Getting pre-approved early, though, doesn’t directly affect insurance premiums, said Keiana Holleman, a spokeswoman for State Farm. Instead, the company says homebuyers should compare policies based on value, not just the price.
“What can make a difference is using that extra time to better understand coverage needs and discuss available discounts and ways to reduce risk,” Holleman said in a statement to the Flyer.
In the end, just because you find a home you like, doesn’t mean you’ll be able to afford that mortgage payment, Coleman says. He’s seen savings of around $60 to $200 when people spent more time shopping for pre-approvals, depending on their home.
“The budget has to be looked at in two ways: what you can approve for, and then also what you’re comfortable in buying,” Coleman said.
News decisions at the Tulsa Flyer are made independently of our board members and financial supporters. Read more about our editorial independence policy here.
