The Credit Score Myth That’s Holding Would-Be Buyers Back

Many would-be buyers aren’t waiting because they don’t want to buy. They’re waiting because they think they can’t. And often, credit score fears are the reason.

A Bankrate survey found that 42% of Americans believe you need excellent credit to qualify for a mortgage. That’s why so many renters say, “My credit isn’t good enough,” when asked why they haven’t bought yet.

If that sounds like you, here’s some good news.

You Don’t Need Perfect Credit to Buy a Home

While today’s typical buyer does have a strong credit score, that doesn’t mean yours has to be flawless.

According to the New York Fed:

  • The median credit score for homebuyers is 775

  • But not everyone buys with a score that high

In fact, data shows that about 10% of recent buyers purchased with credit scores around 660—some higher, some lower.

There’s No Universal Credit Score Requirement

Many people assume there’s a strict cutoff score to buy a home. But that’s not how it works.

As FICO explains:

There is no single credit score required to qualify for a mortgage. Each lender sets its own guidelines and looks at multiple factors—not just your score.

That means even if your credit isn’t where you want it to be, you may still have options.

Talk to a Lender and Explore What’s Possible

The best next step is simply having a conversation with a trusted lender. They can:

  • Review your credit

  • Explain your loan options

  • Help you understand what’s realistic right now

Many buyers are qualifying with scores in the 600s, and you might be able to as well.

Bottom Line

Your credit score matters—but it doesn’t have to be perfect.

If credit concerns have been keeping you from buying, now may be a good time to take another look. You don’t need to have everything figured out to start the conversation—just reach out to a local lender and see what’s possible.

Finding ways to make your credit score better could help you get a lower mortgage rate. When you’re ready to get the process started, let’s connect.

Jeremy Kilbourne

Jeremy is Arch Mortgage North’s Lead Loan Officer. Bringing experience, compassion and creativity to the mortgage lending process, Jeremy loves helping clients achieve their home ownership goals.

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