Why Does Your Credit Score Matter When Buying a House

When it comes to buying a home, your credit score plays a major role in determining your loan approval, interest rate, and overall affordability. So, what is a good credit score to buy a house? Generally, a score of 620 or higher is needed to qualify for most conventional mortgages. However, to get the best rates and terms, a credit score of 740 or above is ideal.

If your credit score falls between 580 and 619, you may still be eligible for certain government-backed loans like FHA loans, though you might need to make a larger down payment or pay higher interest. Scores below 580 can make qualifying more difficult, but options may still exist with larger down payments or alternative financing.

A higher credit score means lenders see you as a lower risk, making it easier to secure approval and better terms. Before applying for a mortgage, it’s wise to check your credit report, pay off outstanding debts, and avoid taking on new credit.

In short, understanding what is a good credit score to buy a house can help you prepare financially and secure your dream home more easily.