It helps to understand the factors that affect your eligibility for a home loan, one of which is your credit score. Mortgage lenders use your credit score to determine if you are a responsible borrower.
So, what credit score is needed to buy a house? There isn’t a single right answer. Credit requirements vary among lenders and the various types of home loans.
While you generally need a good credit score to get the most home loan savings, you don’t need perfect credit to qualify for a home loan. Having a credit score which meets the minimum requirements is only half the battle. Your credit score will also determine what rates you are offered. A higher credit score means better rates and significant home loan savings over time. Therefore, taking steps to improve your credit score will help improve your loan eligibility and save you a lot of money.