Anyone who is thinking about or in the process of buying a home needs to know their credit score. Your credit score can make or break your qualifying for a home loan. A lender wants to make sure you will make your payments on time, pay back your debts and be reliable. 
“Your credit score is one of the most important factors lenders consider when you apply for a mortgage. Not just to qualify for the loan itself, but for the conditions: Typically, the higher your score, the lower the interest rates and better terms you’ll qualify for,” explains Bankrate.
As the rates are rising, a good credit score can be very important to a homebuyer and their mortgage rates. The Federal Reserve Bank of New York reports that the median credit score in the U.S. for those taking out a mortgage is 765.
Do not worry if your credit score is not perfect because you can still buy a house. “Aiming to get your credit score in the ‘Good’ range (670 to 739) would be a great start towards qualifying for a mortgage. But if you’re wanting to qualify for the lowest rates, try to get your score within the ‘Very Good’ range (740 to 799),” reports Business Insider.
“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates,” FICO also explains.
There are ways to improve your credit score. Focus on making your payments on time as late payments have a negative impact on your credit score. Keep your credit limit up but your spending down. When you are in the process of purchasing a home, do not apply for a credit card.
Your Realtor can help you to find the best lender for your needs. A lender will help you find the right loan type for you and your credit score. Today is a challenging market, so you need to keep a good credit score to stay in a positive light.
