Is a good credit score important for first time home buyers?
-Yes. Having a good credit score is essential in being able to qualify for a loan.
Why? In my opinion having a good credit score can be more important then having a down payment. On Kauai almost every home in lendable condition could qualify for a USDA loan with 0% down. There is no down payment needed but a good credit score is needed.
I cant say the exact score needed to get a loan because it varies with lender and the type of loan. I would recommend keeping a FICO score higher then 680.
Start building good credit today: If you dont have much credit it is time to start building some. I started building my credit score by applying for a Capital One credit card. Capital One also has a handy device that will track your credit score for free! This is awesome because it also shows in which areas you can improve your score.
Important tip: Do not let anyone use your line of credit! This includes co-signing for a friend/parent. You should really think wisely about this. Be aware that they could be affecting your chances of home ownership one day.
Overall credit is important so take good care of your credit score.