Are you eager to own your home but worried about your credit score holding you back? Fear not! Dive into my 5-week series where we bust common myths about home buying.

You’ll discover that your credit score isn’t the sole determinant of your homeownership journey. Even if your score isn’t where you want it to be, there are strategies and loan programs tailored to your situation.

Lenders use your FICO credit score to determine how “risky” you are based on your past financial behavior. They want to make sure you can pay back your loan in full and on time. Your score is based on information from your credit report, which is kind of like a “report card” on your financial behavior when dealing with credit. It can range from a high of 850 to a low of 300. Your past payment history and total debt (how much you owe) weigh heavier in its calculation. Your score also takes into consideration how long you’ve had credit, any new credit, and the types of credit. Remember, a credit score has nothing to do with your income or investments. It’s based on how you’ve handled your credit card payments and other loan payments, like your car or student loan. It also takes into account if you’ve declared bankruptcy, have a tax lien, or you’re being sought by a collection agency.

Let’s look at credit score ranges and what impact they have on your loan options today. 740 and above. The higher your credit score, the more options you have – conventional loans, less down payment, lower interest rates – because you’re deemed credit worthy. 720-739. You’re still considered a low risk and lenders want to work with you. 680 – 719. This score is stilled considered good, but your interest rate will be higher and you’ll be offered fewer loan options.620-660. This is considered a fair score and lenders may work with you but may require more documentation to determine if they should take a risk and give you a loan. Below 620. This is considered a poor score and many lenders will deny your loan application completely. Some applications for FHA loans have been approved with a score of 580 or better. These borrowers will most likely have to put down more than the usual 3.5% and face a 10% down payment.

Understanding how your credit score is calculated and exploring available loan options will empower you to take the next steps confidently. Plus, I’m here to answer any questions you have about mortgages, credit scores, or finding the right lender.

Don’t let misconceptions about credit scores delay your dreams of homeownership. Reach out, and let’s chart a course towards your new home together!

Next week, my series will bust the myth that waiting to buy is better. Look out for Renting vs Buying – Your Break Even Point Is Sooner Than You Think.