Credit Score for Home Loan 101: What Smart Buyers Need to Know
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Chelsea Levinson Contributing AuthorCloseChelsea Levinson Contributing Author
Chelsea Levinson, JD, is an award-winning content creator and multimedia storyteller with more than a decade of experience. She has created content for some of the world’s most recognizable brands and media companies, including Bank of America, Vox, Comcast, AOL, State Farm Insurance, PBS, Delta Air Lines, Huffington Post, H&R Block and more. She has expertise in mortgage, real estate, personal finance, law and policy.
When it comes to buying a home, your credit score packs a big punch. That little three-digit powerhouse helps determine both your eligibility to get a mortgage, and how much you’ll pay for that mortgage over time. Before even going to open houses, it’s smart to understand first what qualifies as a good credit score for home loan and how it impacts mortgage options, interest rates, and overall affordability.
Most first-time homebuyers feel understandably apprehensive about this whole credit score thing. In fact, gearing up to buy a home might be the first time you’ve really thought about your credit score in, well, ever.
You may have questions, such as: What exactly goes into your credit score? What credit score do you need to get a home loan? Why do lenders even care? And what can you do if you have no or low credit?
Worry not; we’ve got answers! We talked to top experts to find out everything you need to know about your credit and buying a home.
So without further ado, let’s break it all down.