You?ve made the decision to buy a house, but will a mortgage lender make the decision to provide you with a loan? Many factors go into that equation, including the credit score needed to buy a home.
A mortgage lender will, of course, look at your overall income, debt and savings when making a decision whether or not to provide a loan for your home purchase. The biggest factor, however, is your credit score.
So what is the credit score needed to buy a home? That can depend on the type of mortgage you are applying for, such as a 15-year mortgage, 30-year mortgage, adjustable rate, fixed rate or FHA. On average, you?ll likely need a credit score of at least 600 to secure a mortgage loan.
Credit score breakdown
- You are considered to have an excellent credit rating if your credit score is 750 or above. The maximum credit score is 850.
- Good credit is in the 700 to 749 range.
- Fair credit is in the 650 to 699 range.
- Poor credit is in the 550 to 649 range.
- Bad credit is 550 and below.
So what is your credit score? Do you have the credit score needed to buy a home? If you?re unsure, contact a mortgage lender or The Olear Team today. If your score is too low to obtain a mortgage, we?ll give you some tips to bring it up to an acceptable level.