Your credit score plays a huge role in determining:
- Whether you qualify for a mortgage
- What interest rate you’ll receive
- What kind of loan products are available to you
General credit score tiers for home loans:
- 740+ = Excellent (lowest rates, best terms)
- 700–739 = Very good
- 660–699 = Fair (may qualify, but higher rates)
- 620–659 = Borderline approval
- Below 620 = Often denied conventional loans; may need FHA or subprime options
Lenders want to see consistent payment history, low credit utilization, and no recent derogatory marks. A higher score can save you tens of thousands in interest over the life of your loan.
Tips to boost your score before applying:
- Pay down credit card balances
- Don’t open new lines of credit
- Avoid late payments
- Dispute any reporting errors
