Is My Credit Score Good Enough to Buy a House?

Credit repair

Many adults who pay rent might be able to afford mortgage payments, but switching from renting to owning is a process that requires planning and forethought. If you’re considering applying for a mortgage, one of the first things you want to pay attention to is your credit report and score. Ask yourself, Is my credit score good enough to buy a house?

Typically, the lower the credit score, the higher the cost. Although borrowers with credit scores as low as 580 could qualify for an FHA loan — a mortgage insured by the Federal Housing Administration — their interest rates will likely be higher than those given to borrowers with credit scores in the 700s and up.

A lender will also look at other things on your report. For example, the presence of collection accounts or a bankruptcy on your credit report could cause some lenders to turn you away, even if you have an average or better score.

6 Steps to Boost Your Credit Score to Get a Mortgage

If you’re anxious to get your credit into shape for mortgage approval, here are some steps you can take to improve it:

1. Give yourself time

The good news is that past struggles with finances won’t automatically render you ineligible. The bad news is that a few months might not be long enough to correct old mistakes. Six to 18 months of dedication to score improvement should suffice, but the time frame is a little different for everyone.

Read the other 5 steps on GOBankingRates.com! 

If your want help with improving your credit situation so you can buy a home, learn how you can start repairing your credit here. You can also carry on the conversation on our social media platforms. Like and follow us on Facebook and leave us a tweet on Twitter.

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