What's a Good Credit Score to Buy a House?

When it comes to buying a house, your credit score is invaluable. The higher your credit score is, the better your loans, credit cards and interest rates will be. Since the economic crisis of 2008, lenders have tightened the requirements for buying a house. Good credit scores for buying a house vary with each lender.

Good Credit Scores to Qualify

Depending on the lender, a good credit score for buying a house may range from 660 to 760. While a 660 may make you eligible for a home loan, it probably wont get you a low interest rate. The difference in rates could be as much as 2 percent.

Other Factors When Buying a House

Aside from your credit score, a lender will also consider your debt to income ratio, your liquid assets (easily accessible cash) and your down payment.

Qualifying for a Better Interest Rate

If your credit score is less than 760, you may be able to nab a good interest rate by making a large down payment (at least 20 percent). Having at least 6 months of emergency money in your savings may also help to lower your interest rate.

Pulling Your Credit Reports

Prior to purchasing a home, get a credit report and credit score from each of the credit bureaus (Equifax, Experian and Trans Union). Review your report and contact each of the bureaus about any errors. Visit myFico.com to get all three of your reports.

Improving Your Credit Score

Prior to shopping for a home loan, decrease your debt and increase your savings.