Getting a mortgage is a bit easier now that lenders are beginning to loosen borrowing standards that excluded many buyers in the throes of the pandemic. But easier doesn’t mean easy, and you will still need the best possible credit score to avoid additional scrutiny from your lender.

A conventional mortgage typically calls for a minimum credit score of 620, but you may be able to get some government-backed loans with a score as low as 500.

Generally, the higher the credit score, the better the interest rate. Still, lenders can impose their own credit requirements, which means your credit score must be in good shape before you buy.

The minimum credit score for a mortgage depends on the type of loan – conventional or government-backed – and the lender. You won’t find a universal credit score for mortgages. Typically the minimum credit score for a mortgage ranges anywhere from 580 to 620.

You can choose between conventional or government-backed loans, which are insured by the Department of Agriculture, the Department of Veterans Affairs, or the Federal Housing Administration. The government guarantee protects the lender if you default on your mortgage, which means you could qualify for a government-backed loan more easily than a conventional loan.

If you’re in the market for a mortgage, this table shows the minimum credit score requirements for FHA, VA, USDA, and conventional loans.

If you want a jumbo mortgage, which exceeds the government’s lending limits for mortgages backed by Freddie Mac and Fannie Mae, lenders will expect a credit score of at least 680. In most states, a jumbo loan is a mortgage that’s more than $548,250.

Many lenders require FICO scores of at least 700 for jumbo loans on single-unit properties, but VA borrowers can obtain them with credit scores of at least 640.

A bad credit score won’t be a roadblock to approval, but it often means paying more than if you had good credit.

Generally, lenders view a credit score as a leading indicator of the borrower’s likelihood to repay a loan. The lender, as a result, will ask a borrower with a lower credit score to pay a higher rate, all else being equal.

Even a small difference in your interest rate can add up to thousands of dollars over time. A 30-year $250,000 loan at 4% interest results in paying $179,674 in total interest; a quarter of a percentage point more costs an extra $13,072 in total interest.

The higher interest rate also translates to a higher monthly payment: You’d pay $1,194 at 4% and $1,230 at 4.25%.

A good credit score alone will not make you a lock for a home loan. Yes, lenders consider credit when you apply for a mortgage but also take into account your:

If you’re worried that your credit score could affect your mortgage eligibility and interest rate, you can try to raise your score. Start by pulling your credit report from AnnualCreditReport.com.

Ensure there are no credit reporting mistakes on your credit report. If there are mistakes, make sure to reach out to the credit companies and fix any errors.

Next, take these steps to improve your credit score before you apply for a home loan:

Allow as much time as possible to work on improving your credit score: ideally, six months to a year before you start shopping for a loan. Don’t wait until the last minute, when you might end up losing your dream house.

Before attempting to improve your credit we ask that you give us a call first. We can point you in the right direction so you don’t end up doing something that can hinder your chances at the best mortgage rates for your situation.