The real estate home buying process can be scary, and getting a mortgage doesn’t make that stress go away. But can you really buy a house with a bad credit score? What credit score do you need to get a mortgage loan to buy a home?
By knowing what credit score you have and what credit score you need in order to buy a home, you can better prepare for qualifying for the mortgage loan you need.
Understanding Your Credit Score
The first step is to identify your current credit score. If you don’t know where to do this, Edukate recommends freecreditscore.com to do this. This site also allows you one free credit score pull every 30 days.
Once you know your credit score, use the following to understand what this score means for you and your housing options:
The Importance of a Good Credit Score
Having a good credit score for mortgage applications is crucial for the real estate home buying process. Not only can it increase your options and chances of getting a loan, but it may give you access to better loans.
You may be able to get a lower interest rate on your mortgage or loan estimate. Or you might be able to get a loan even if you don’t have the standard 20% down payment.
Make Real Estate Home Buying Easier
A good credit score opens tons of doors to financial freedom, including buying your first (or fifth) home. If you have a high enough credit score to get a mortgage loan, you can start to look for your dream home.
Then, you can start building a life you love, and you won’t have to worry about renting or moving around. Fortunately, you don’t need a perfect credit score – or a full 20% down payment – to get a mortgage.
Do you have a question about home buying? Let us know, we’d love to hear from you.
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This post was brought to you by Torii, a real estate brokerage serving the Greater Boston area, San Francisco Bay Area, and Los Angeles area. Buy a home with Torii and we’ll pay your closing costs. Learn more at ToriiHomes.com