Mortgage lenders carefully review applicants before approving them for mortgages because of the size of the loan being issued. Typically, your credit score is one of the first things lenders look at.
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If your credit score falls below 620, you will usually be classified as a subprime borrower, according to Bankrate.com, which will result in a higher interest rate. However, Lending Tree contends that you can get a mortgage with a score as low as 500, but you will have to provide additional documentation proving you can repay the loan.
In addition to qualifying you for a mortgage, a good credit score can get you a lower interest rate. To get the lowest rates, Bankrate.com recommends a credit score of at least 740.
Your credit score is only one factor mortgage lenders look at, in addition to your income, employment and other existing debts. Even if you have a stellar credit score, lenders will not issue you a mortgage you have no means to repay based on your current income.
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