In terms of qualifying for a mortgage, generally, you'll likely need a score of at least 620, which is classified as a fair rating, to qualify with most lenders.
Your credit score helps lenders determine your ability to repay the mortgage and, subsequently, their risk in extending you the loan.
The higher your score, the less risk you present to lenders. Therefore, better credit leads to better interest rates and mortgage terms.
With a Federal Housing Administration (FHA) loan, you might be able to get approved with a score as low as 500.
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