Build Idaho | 2020 BOISE IDAHO REAL ESTATE BLOG
What Credit Score do I Need to Buy a House? Main Treasure Valley Life

As we all know, buying a house is a huge decision, both personally and financially. Just about everyone on Earth will need to get a loan to buy a house.  As part of the loan approval process, lenders will look at your credit score to determine your ability to pay back previous debts. But what credit score are lenders looking for?

The rule of thumb that gets said most often is that you need a credit score of 750 or higher to get approved for a loan. A higher number means the bank feels that you are at low risk of missing or defaulting on your payments, as well as being eligible to potentially get a better interest rate. If you have a credit score of 750+, congratulations! If you don’t have the supposed magic number, don’t fret.

According to the latest Ellie Mae Origination Insight Report, more than 50% of people who were approved for home loans in 2019 had a credit score less than 750. In addition, 41.3% of people had a credit score of 650-749. This means that a wide range of credit scores can be eligible for home loans. Talk to your mortgage lender for information about your credit score and how it affects your ability to buy a home.

If your credit score is lower than you want, there are many ways to raise it. Two of the top ways are to track and cut expenses; and pay your credit card bills or car payments on time and with payments larger than the minimum balance to pay it off sooner.

Related: The Relationship Between Social Media and Your Credit Score

 
Posted by AndrewS at 5/27/2020 4:04:00 AM
Account Login   Account Registration
Comments (0)
No comments yet, login to post a comment.

 

Michelle Penick, Boise Idaho Real Estate Agent

How may I help you?
Michelle Penick

818.472.1767
[email protected]
Schedule Tour