Your credit score plays a crucial role in determining the types of loans and interest rates for which you may qualify. It serves as a snapshot of your financial reliability, giving lenders insight into how much of a risk it might be to extend credit to you.

 

Improving your credit score and reducing your debt can greatly enhance your mortgage options. Higher scores open the door to better loan offers with lower interest rates, potentially saving you thousands over the life of your loan.

 

Your credit score is calculated based on several key factors, including:

- Your payment history

- The total amount of debt you owe

- The length of your credit history

- The variety of credit types you’ve used

- Your recent pursuit of new credit

 

To qualify for most home loans, lenders typically look for a credit score of at least 620. However, a score of 720 or higher will generally unlock the most favorable loan terms available.