What Is a Credit Score — and Why Does It Matter?

Your credit score is one of the most important numbers in your financial life — especially when it comes to buying a home. Lenders use it to decide if you qualify for a loan and what interest rate you’ll get. A higher score can mean better deals and lower monthly payments.

How Credit Scores Impact Your Mortgage

• Loan Approval: Most lenders have minimum credit score requirements. A low score can lead to denial.

• Interest Rates: Higher scores often qualify for lower rates, saving you thousands over time.

• Down Payment Requirements: Better credit may also reduce how much you need upfront.

• Loan Options: A strong score gives you access to more loan types and flexible terms.

What’s a “Good” Credit Score?

Credit scores typically range from 300 to 850. While every lender is different, here’s a basic rule of thumb:

• 740+ = Excellent

• 670–739 = Good

• 580–669 = Fair

• Below 580 = Poor

Aim for at least 670 to qualify for most standard home loans.