Sunday, October 1, 2023 / by Lance Kelehan
Here's what you need to know about understanding your credit score and how it affects your home buying ability:
The Importance of Credit Scores in the Home Buying Process
Your credit score is one of the most important factors that lenders consider when evaluating your mortgage application. A higher credit score typically translates to a lower interest rate and more favorable loan terms, which can save you thousands of dollars over the life of your mortgage. Most lenders use the FICO credit scoring model, which ranges from 300 to 850. A score of 700 or higher is generally considered good, while a score below 650 may make it more difficult to secure a mortgage.