How Mortgage Lenders Use Credit Scores
Credit scores generally range from 300 (the lowest) to 850 (the highest). This number can make a big difference in determining whether you qualify for a mortgage and the terms you are offered.
A higher score increases a lender’s confidence that you will make payments on time and may help you qualify for lower mortgage interest rates and fees. Additionally, some lenders may reduce their down payment requirements if you have a high credit score.
What Credit Score do you need to get the Best Mortgage Rate?
- A high score-- A score of 670 or higher is considered good. Lenders differ, but they generally want to see a score of at least 620 before offering most home loans. Mortgage lenders also consider things like your credit report, level of debt and income.
- A low score-- If your score is below 620, you may still be able to qualify for a loan backed by the Federal Housing Administration. FHA loans tend to have higher interest rates and fees.
NMLS ID 394275 | DRE ID 01769353
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