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Mortgage Basics: How Does Your Credit Score Impact the Home Buying Experience?

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How does your credit score impact the home-buying experience? A mortgage lender will primarily consider your income, employment history, current monthly debts, assets, rental payment history, the size of the loan, and your down payment when evaluating their risk in lending money. So while your credit score isn't the only factor, it is a significant one.

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Sheets of paper are placed into a pile.

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Some mortgage products have a minimum credit score requirement. So it's important to maximize your credit score well in advance of starting the home-buying process.

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The sheets of paper are placed on top of a three digit number that is changing. The number continues to increase rapidly.

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Credit scores can typically range from 300 to 850. And any credit score above 740 is generally considered excellent.

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A dial moves along a scale displaying various credit scores.

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Among other things, debts, such as credit cards as well as auto loans, student and personal loans, impact your credit score along with your bill payment history.

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Three circles display a credit card, a car, and a student. A hand gives another hand money.

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Consistently paying your bills on time can help ensure your credit remains healthy.

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A sheet of paper is stamped with the word “PAID”.

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So it's important to remember that if your credit score isn't where you want it to be, you can improve it over time.

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A dial moves along a scale displaying various credit scores.

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This can help you better compete in the market for the house you want, make it easier to handle the upfront costs of buying a home, and help make home ownership easier to manage in the long run, as this may provide you with more available financing options, getting you one step closer to making that property love your home.

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A trophy, a stack of money, and a hammer are displayed above a house. Logo, US Bank. Equal Housing Lender Disclaimer Messaging.

Mortgage basics: How does your credit score impact the home buying experience?


Understanding your credit score’s impact could help you be better prepared for the home buying process.

Tags: Credit, Home, Prequalification, Home buying, Mortgage, Loans
Published: April 20, 2018

When you apply for a home mortgage, in addition to your credit score, a mortgage lender will consider your income, employment history, current monthly debts, assets, rental payment history, the size of the loan and your down payment when evaluating their risk in lending you money. While your credit score isn’t the only factor considered, it’s a significant one. Learn more about the impact of your credit score on the home buying process.

Learn more about the home loans that may be available to you.

 

Mortgage and Home Equity products are offered by U.S. Bank National Association. Loan products are offered by U.S. Bank National Association and subject to normal credit approval.