Mortgage Rates and Your Credit Score

Lenders generally offer the best mortgage rates and terms to borrowers with higher credit scores.

As a general rule, if you have a credit score of 740 and above, it will give you a better chance of getting a favorable rate.

However, you can qualify for a mortgage with a score in the 600s. The options are much slimmer and loan costs can be higher for borrowers with a score in the 500s.

If your credit is marginal, it might make sense to postpone buying a house and use the time to work on building your credit.

The average FICO credit score for closed mortgage loans in the past 30 days was 732, according to the mortgage data provider: ICE Mortgage Technology.

I hope this helps.