CNBC Select gets credit advice from a mortgage expert on what first-time future homeowners need o know to prepare before applying.
The median credit score of successful mortgage applicants last year was 759, or “very good” on the FICO scale. Only 10% of mortgage borrowers had credit scores under 647, according to the Federal Reserve.
And while it’s not the norm, borrowers with scores as low as 620 are getting approved for new mortgages, even amid the current economic downturn. Yet, having a healthy credit score still matters when applying for a mortgage as banks tighten their lending standards.
To increase your chance of securing a loan, pay attention to where your credit stands — and don’t give up hope if it’s low.
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