Understanding Your Credit Score

Once you have a basic understanding of what credit score is needed for each type of loan, it’s time to take your own score into consideration. That means looking at your credit report. Your credit report is an essential part of understanding your credit score, as it details your credit history. Any mistake on this report could lower your score, so you should get in the habit of checking your credit report at least once a year and report any errors to the credit reporting agency as soon as you find them. You’re entitled to a free credit report from all three major credit reporting agencies once a year. Once you know your score, you can assess your options for a conventional or government-backed loan – and, when you’re ready, apply for a mortgage.

*Conventional Loan Requirements 620

*FHA Loan Requirements 580

*VA Loan Requirements 580

*USDA Loan Requirements 640

The Bottom Line: The credit score required to buy a home differs based on the type of loan you’re applying for. But the higher your score is, the easier it will be to get a great mortgage loan. The key is to stay on top of your score and check your credit report regularly.

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