How High: The Credit Score You Need for a Mortgage
You’re concerned your credit score isn’t high enough to qualify for a mortgage. Don’t fret yet. While it’s true that lending standards have recently become stricter, you might be surprised by the options still available for borrowers with lower credit scores. Not only that, but the minimum credit score varies by loan type, so it’s not like there’s only one magical unicorn loan out there for everyone to fight over.
Yes, the majority of borrowers right now have a score above 750, and more stringent standards are posing a challenge for many, but there’s more to qualifying for a mortgage than just the credit score. And there are still options that allow people with lower credit scores to buy their dream home. Lenders consider income, down payments, savings, debt-to-income ratios, and more.
There’s no doubt a higher credit score will give you more options and better terms when applying for a mortgage, especially when lending is as tight as it is right now. When planning to buy a home, speaking to an expert about steps you can take to improve your credit score is essential so you’re in the best position possible. However, don’t rule yourself out if your score is less than perfect – today’s market is still full of opportunities.
What You Need to Know
Don’t let assumptions about your credit score put a premature end to your homeownership goals. The credit score required to buy a home will change based on the type of loan you’re looking for. The first step is finding out where you stand, and The Green Mortgage Team is here to help! Contact our reps today to discuss the best options for you.
-Kyle Green
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