What’s the Ideal Credit Score to Buy a Home?

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TWL_2016_Feb_Blog4It’s no secret that banks have become increasingly strict about handing out mortgage approvals since the housing crisis. Now,more than ever, a prospective homebuyer’s credit score is under intense scrutiny by banks. So exactly what score do lenders find ideal? According to an article posted this week on Realtor.com, a score in the 740 range gives borrowers the highest likelihood of securing a conventional loan. A lower credit score is not a deal breaker, but in most cases, borrowers will be required to make a 20 percent down payment to qualify, and will receive less favorable interest rates. What is the lowest score a borrower can expect to have and still secure a mortgage? One loan officer interviewed for the article said 580, which is considered a bad credit score, is the lowest score she has seen receive recent mortgage approval.

To learn more, read the entire article.

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