Minimum Credit Score
As a continuation from Part 1 of the credit score requirements, I am continuing this artcile to advise you of the score requirements to qualify for a conventional loan:
If you are purchasing a home trying to use conventional financing, then you'll need a 620 minimum credit score. Please note that your rates will be either higher or lower depending on your credit score. Lenders will charge you a higher rate if your scores are lower and the reverse is true also. If your scores are higher (closer to 740 or above) then your rates will be lower. Lenders view persons with low scores as a higher risk to lend to. As opposed to persons with high credit scores that have proven they have the ability to borrow money wisely and repay their debts ontime and consistently over a long period of time.
If you have time before your purchase or refinance to raise your credit scores, then do so. You will wind up spending less money on interest rate over the long term. It's never too late to start either fixing or re-establishing credit. It only takes time and diligence.