Credit Score for Home Loan 101: What Smart Buyers Need to Know

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.

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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.