How Good Does Your Credit Need to Be to Buy a Home?

Published On: December 8, 2021|Categories: Blog, Buyers, Home Buyers|Tags: How Good Does Your Credit Need to Be to Buy a Home, What does your Credit Need to Be to Buy a Home|

If you’re thinking about buying a home, you know that your credit score has a direct impact on your mortgage. But how good does it need to be?

How Good Does Your Credit Need to Be to Buy a Home?

Having a high credit score certainly helps you get approved for a mortgage loan. However, that doesn’t mean your score needs to be perfect. In fact, you can be pre-approved for a mortgage loan with a credit score in the 600s – though your interest rates will certainly reflect your score.

$785,000

410 Riverside Drive Jasper, Indiana

7 Beds 6 Baths 5,132 SqFt 1.13 Acres

Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.

$612,000

39 Hannah Lane Jasper, Indiana

4 Beds 4 Baths 4,834 SqFt 1.65 Acres

Listing courtesy of Nathan Hanselman from SELL4FREE-WELSH REALTY CORPORATION.

$509,700

3289 St. Charles Street Jasper, Indiana

4 Beds 4 Baths 3,906 SqFt 0.595 Acres

Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.

$425,000

1376 N Hayland Drive Jasper, Indiana

3 Beds 3 Baths 2,500 SqFt 0.85 Acres

Listing courtesy of LarryCarpenter III from Carpenter Realty LLC.

$349,900

1749 W 1st Street Jasper, Indiana

4 Beds 3 Baths 2,011 SqFt 0.35 Acres

Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.

$349,700

464 Kluemper Road Jasper, Indiana

3 Beds 2 Baths 1,851 SqFt

Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.

$342,000

1153 W 13th Street Jasper, Indiana

3 Beds 3 Baths 4,541 SqFt 0.36 Acres

Listing courtesy of Amy Uebelhor from SELL4FREE-WELSH REALTY CORPORATION.

$339,900

394 Saint Charles Street Jasper, Indiana

3 Beds 4 Baths 2,806 SqFt 0.3 Acres

Listing courtesy of Gary Schnell from SELL4FREE-WELSH REALTY CORPORATION.

$294,900

4114 Lee Drive Jasper, Indiana

4 Beds 3 Baths 2,588 SqFt 0.26 Acres

Listing courtesy of SteveLukemeyer from F.C. TUCKER EMGE.

$289,700

4229 New Birch Drive Jasper, Indiana

3 Beds 2 Baths 1,429 SqFt 0.24 Acres

Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.

Higher Interest for Lower Scores

Generally, the lower your credit score is, the higher your interest rate will be. It’s worth trying to work on your credit, even if you can only make a small improvement, before you apply for a mortgage. That’s because over time, your interest rate dictates exactly how much you’ll pay for a home.

What About Points?

If you’re able to save a little extra cash (in addition to your down payment), it may be worth it for you to purchase discount points. Points are one way to lower your interest rate, which can save you money in the long run.

Are You Thinking of Buying a Home in Dubois County?

Use our site to search homes for sale in Jasper, Dubois, Spencer, Martin and Davis counties, as well as all the surrounding communities. Unlike the “big name” sites out there, at Sell 4 Free Welsh Realty, our site is directly connected to our local MLS. We update it with new homes every hour.

Sign up for new listing alerts so you can stay on top of the newest homes for sale – and get price change alerts so you can stay ahead of other buyers and beat them to the hottest deals!