Credit Scores and Mortgages

January 4th, 2023

To buy a home, you’ll undoubtedly need a mortgage. A big indicator of whether you can qualify for a conventional mortgage will be your credit score. This three-digit number is a representation of your credit report which provides a lender with your history of paying your debts.

A perfect credit score is 850, with an excellent score being anywhere from 750 – 850. A good score ranges from 700 – 749 and a fair score is in the 650 – 699 range. If your score is lower than 650, it is considered poor, and indicates that you have experienced issues with paying debt. As noted in this article from Realtor, an excellent credit score improves your chances of securing a mortgage. As noted in NerdWallet, you can still qualify with a lower score, but you may be quoted a higher interest rate. Other options for buying a home with a low credit score would be to consider an FHA, VA or USDA mortgage. Learn more here, and make 2023 a year of strengthening your financial picture, so you can purchase a home when the time is right.

If a Sal Paone Builders home is on your New Year’s wish list, keep an eye on our website for updates on possible resales and new communities.

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