Most buyers overestimate what it takes to qualify. Let’s clear that up.
Here’s something I hear all the time: “I’d love to buy a home… but my credit’s not great.”
If that’s you, I’ve got good news.
According to Fannie Mae, 90% of buyers either don’t know what credit score lenders are looking for… or they guess too high. That means a whole bunch of folks are sitting on the sidelines when they might be ready to jump in. You might be falling for one of those homebuying myths.
Let’s break it down.
There’s No Magic Number
There’s no one-size-fits-all score that gets you a home loan. Lenders look at a lot more than just your credit. In fact, different loan types tend to have different score ranges. Here’s a quick snapshot of median scores across loan programs:
So no, you don’t need an 800. Most people don’t have perfect credit… and you don’t need it.
Why Your Score Still Matters
Even though there’s no “pass/fail,” your credit score still plays a role in:
- What loan options are available to you
- The terms of your loan
- How much home you can afford
In other words, your score helps shape the game plan… but it doesn’t decide the outcome.
Want to Improve Your Score? Start Here
You don’t need a credit overhaul. Just a few smart moves can make a big difference:
1. Pay your bills on time. Sounds simple… because it is. This one factor has a big impact on your score. Set reminders, use auto-pay, do whatever helps you stay on track.
2. Keep balances low. If you’ve got a credit card limit of $10,000, try to keep your balance under $3,000. That’s called credit utilization, and lower is usually better.
3. Check your credit reports. Mistakes happen. Grab your free credit report at AnnualCreditReport.com, and make sure everything looks right. If it doesn’t, dispute it.
4. Skip new accounts unless you need ’em. Opening a bunch of new credit lines can hurt more than help. Stick to what you’ve got unless it serves a real purpose.
5. Use a credit-building tool. Secured credit cards, credit-builder loans, or becoming an authorized user on someone else’s card can all help add some positive momentum.
Bottom Line
You don’t need a perfect score to become a homeowner. And your score might already be in a better place than you think.
Want to know where you really stand? Let’s take a fresh look and make a game plan together.
