Definition
A credit score is a three-digit number that represents your creditworthiness. It's based on your credit history, and a higher score indicates a lower risk to lenders, making it easier to get approved for a loan.
Understanding Credit Scores in Mortgages
During the mortgage process, your credit score plays a key role in determining loan options. It's a simple three-digit number that reflects your credit history. Lenders use it to assess risk. Example: A score of 750 is generally seen as strong, while 600 might suggest more risk. Higher scores often expand financial possibilities. It's not the only factor in mortgage approval, but it's significant. It doesn't capture your entire financial picture, like income or savings.
