A healthy credit score is a requirement for getting approved for a mortgage. The minimum score allowed on and FHA or VA loan is 580, although most lenders won't touch a loan with a score under 620.
A minimum credit score for a loan is 620-680; a good score is 680-790; and an excellent score is 790-850.
Here's a quick video that explains what goes into your credit score:
Markita, great information, as our credit score affects many aspects of our lives.
Here is a terrific explaination of how your credit score is reviewed. Your score affects your large purchases and also your insurance rates. Listen and learn from Markita's information!
Will Hamm
Aurora, CO
Hello and Thanks for sharing this, lots of buyers do not know what it takes to have a credit score and how to build it.
Dee Toohey
Longwood, FL
Will Hamm I know. Unbelievable. And many don't listen when they are told not to change their credit picture when they are trying to finance a home or car.
Will Hamm
Aurora, CO
The other scenario that causes underwriters angst is borrowers who decide on their own to pay off a big debt, like a car, or a big balance on a credit card. I tell folks not to do that because it will cause their credit score to dip lower, and mess up what the processors have done to make the loan approvable.
I tell borrowers not to pay off debts, or buy something new on credit until they contact me first. We still get "geniuses" who do it any way, and loan processing comes to a screeching halt.
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