What Credit Score Is Needed to Buy a House?
If you’re planning to purchase a home, you might be wondering what you’ll need for your mortgage application. When deciding whether to approve one of these applications, a lender will typically consider the buyer’s income, employment history, savings, investments, debts, and credit score. So, what credit score is required to buy a house? We’ve got the answers you need below.
What Is a Credit Score?
Before delving into the credit score that’s required to purchase a house, it may be helpful to explain what a credit score is and why it’s important to your lender. Credit scores typically range from 300 to 850 (with higher scores being better) and are based on numerous factors, including:
- Whether you have a history of paying bills on time
- Whether you’ve ever had debts sent to collection, been foreclosed upon, or filed for bankruptcy
- How much unpaid debt you currently have
- How many loan accounts you currently have
- The type of loan accounts you currently have
- How long you’ve had your loan accounts open
- The percentage of available credit that you’re currently using
- Whether you’ve recently applied for new lines of credit
Your credit score is important to your mortgage lender because it indicates how likely you are to pay back the loan on time.
What Credit Score Do You Need to Buy a House?
Many mortgages require a credit score of at least 620. With that said, certain government-backed mortgages (e.g., Federal Housing Administration loans) often have lower credit score requirements. An experienced real estate attorney can provide you with customized advice about the minimum credit score you’ll need for your specific mortgage application.
How to Raise Your Credit Score
Even if you currently have a low credit score, there are certain steps you can take to raise your score before you begin looking for houses and applying for a mortgage. For example, you should:
- Make payments on time
- Avoid getting too close to your credit limit
- Pay down any outstanding balances
- Avoid closing credit cards
- Avoid opening new lines of credit (this includes opening new credit cards, applying for new loans, and co-signing on new loans)
- Review your credit report to confirm that it doesn’t contain any errors (and if it does, dispute those mistakes)
Ready to Buy a House?
Before you move forward with purchasing a home, you’ll want to have an experienced real estate attorney on your side. Luckily, if you’re in the Tampa Bay region, you’ll be able to get the help you need from the skilled team at The Lyons Law Group, P.A., a real estate law firm with offices in New Port Richey, FL, and Spring Hill, FL. Founded in 2008, our firm provides real estate closing services for clients in Pasco County, Hernando County, and the surrounding area.
Contact The Lyons Law Group, P.A., today to request a free initial consultation with one of the knowledgeable real estate attorneys at our firm. We’ll be happy to discuss credit score requirements and answer any other questions you might have so that you can take the next step forward with buying a house.
