While looking at the data from the most recent Origination Insight Report by Ellie Mae, the median credit score on closed loans hit 753 during February. Since lending standards have recently become stricter, many are concerned about whether their credit score is strong enough to get a mortgage.
Although, this could be a challenge for some, you’d be surprised to learn that there are the loans available for those with lower credit scores!
With more future homebuyers with a high credit score entering the housing market, the average credit score of new homeowners is gradually rising.
You might have a credit score below 750 and the alarms might be going off in your head, but don’t let this put fear in the picture. There’s a lot more to qualifying for a mortgage than just the credit score. Even if you have a lower credit score, you may still be able buy your dream home. Below is what Experian, a global lender in consumer and business credit reporting, says:
There are definitely perks to having a higher credit score when it comes to getting a mortgage; these include more loan options and better terms. If you’re planning to buy a home, and are concerned about your credit score, it’s important to speak to an expert about the next steps to improve your credit score before you start your journey. This will put you in the best position to buy a home.