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CREDIT SCORES

Understanding Credit Scores:

What You Need to Know to Buy a Home

Did you know that 7 out of 10 prospective homebuyers are unaware of the minimum
credit score required to qualify for a home loan? It’s a common misconception that
you need perfect credit to buy a home, but that’s not the case.

According to Experian, the minimum credit score required by lenders typically
ranges between 500 and 700, depending on the lender and loan type. For example:
FHA Loans: May require a score as low as 500, though a higher score may be needed
for lower down payments.

Conventional Loans: Usually require a minimum score of 620 or higher.
VA Loans: Often have more flexible requirements, though individual lenders may set
their own minimums.

This variability means that even if your credit isn’t perfect, you may still qualify for a

mortgage.

Why Your Credit Score Matters
While your credit score isn’t the only factor lenders consider, it plays a key role in
determining your loan options, interest rates, and overall borrowing power. A higher
score can open doors to better terms, but don’t let an imperfect score discourage
you from pursuing your dream of homeownership.

What You Can Do

If you’re unsure about your credit standing or what loan options are available to you,
start by consulting a trusted lender. They can help you:
Understand your credit report and address any issues.
Explore loan programs that fit your financial situation.
Develop a plan to improve your score if needed.

Bottom Line

You don’t need perfect credit to buy a home. At S&D Real Estate, we believe that
knowledge is power, and we’re here to connect you with the resources you need to
navigate the homebuying process. Partner with a lender and take the first step
toward making your dream of homeownership a reality.
Let’s make it happen together!
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