Most people know that having a good credit score increases the likelihood of being approved for a mortgage since it demonstrates to the lender that the borrower is likely to make the loan payments on time.
So, what should a prospective borrower’s credit score have to be for a lender to approve a mortgage? And as for the minimum, how many people know that credit score depends on the kind of mortgage they want?
Additionally, having good credit makes the home buying process simpler and more economical – because a higher credit score implies a lower mortgage interest rate for someone who qualifies.
FHA loans are usually less risky for lenders and, as a result, easier to qualify for than conventional mortgages because the Federal Housing Administration insures them.