What does it mean to have good credit for buying a house?

If you’re planning on buying a home, you’ll likely need to obtain a mortgage. Do you think having a good credit score is all you need? Think again!

The importance of a good credit score
Your credit score serves as a risk indicator for lenders. If your score is below 650, this could limit your pool of potential lenders. Conversely, if your score exceeds 720, financial institutions will be more likely to trust you and give you a better rate.

Credit report
In addition to your credit score, your credit report includes essential information about your credit history, including data about various types of credit, such as lines of credit and revolving credit.

Getting a loan
Every financial institution has a process for assessing your creditworthiness. They usually check your credit rating, income, down payment, mortgage stress-test score and other elements.

Contact a financial advisor or mortgage broker to find out about your financial and credit situation.