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What is ideal credit score to buy home?

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Contributor

What is ideal credit score to buy home?

My current scores:

EQ: 758

EX: 757

TU: 749

I want to purchase a home late next year. What score should I strive for to get the best interest rate possible?  I have zero negative items on my report.

FICO EQ:794
FICO TU:778
FICO EX:816


Amex Cash (10k). Chase Shappire Preferred (9k). Discover It (7.5k). Chase (6.7k). BofA Cash Rewards(5k). Chase Slate (4k). Credit One (1.5k).
Started with 462 score in 2013 and $300 CL on Credit One.
Message 1 of 16
15 REPLIES 15
Super Contributor

Re: What is ideal credit score to buy home?

The higher the better.  But your acores are still good now to get you good rates.

Message 2 of 16
Senior Contributor

Re: What is ideal credit score to buy home?


@josemnz83 wrote:

My current scores:

EQ: 758

EX: 757

TU: 749

I want to purchase a home late next year. What score should I strive for to get the best interest rate possible?  I have zero negative items on my report.


A good goal would be 780. Typically best rates are available for scores over 760.

 

Not sure if the scores you list are Fico 08 or Fico mortgage scores which are EQ score 5 & TU score 4 (both Fico 04) and EX score 2 (Fico 98) - these are the ones you need to key in on.

 

At 780 you have a little buffer in the event your score drops due to some unplanned event.

Fico 8: .......EQ 850 TU 850 EX 850
Fico 9: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
VS 3.0:...... EQ 835 TU 835 EX 835
Fico 8 BC:. EQ 892 TU 900 EX 900
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 3 of 16
Contributor

Re: What is ideal credit score to buy home?

The scores I listed are Fico 8.  I will purchase all FICO reports in January.  Thanks

FICO EQ:794
FICO TU:778
FICO EX:816


Amex Cash (10k). Chase Shappire Preferred (9k). Discover It (7.5k). Chase (6.7k). BofA Cash Rewards(5k). Chase Slate (4k). Credit One (1.5k).
Started with 462 score in 2013 and $300 CL on Credit One.
Message 4 of 16
Established Contributor

Re: What is ideal credit score to buy home?

You're just fine where you're at. After about 760 its totally irrelvant if your score is any higher. It just becomes bragging rights.

FICO- Experian: 797, TransUnion: 781, Equifax: 804 (Updated Monthly)
Message 5 of 16
Senior Contributor

Re: What is ideal credit score to buy home?

Incorrect statement.

 

Best interest rates generally require 760 + Fico mortgage scores. The majority of profiles show lower Fico mortgage scores than Fico 08 classic scores - and you do want a buffer in your score

Fico 8: .......EQ 850 TU 850 EX 850
Fico 9: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
VS 3.0:...... EQ 835 TU 835 EX 835
Fico 8 BC:. EQ 892 TU 900 EX 900
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 6 of 16
Super Contributor

Re: What is ideal credit score to buy home?

I agree with TT that your scores are arguably a bit close, and with his observation that your mortgage scores are the ones that matter, and that yours could conceivably be significantly lower than your standard scores.

 

Therefore, until the house is yours, I'd avoid doing anything that has a chance of lowering your score. For example, you have several nice credit cards right now, so I would not open any more cards.  If you have no more inquiries and no more accounts, the next year will just bring you more age and more points.

Message 7 of 16
Established Contributor

Re: What is ideal credit score to buy home?

I agree with those who say the higher the better to give yourself some wiggle room. I would shoot for 780-800 for Fico 8 and close to that for your mortgage scores. You have a soild basis to achieve this. 

 

I am very sick of seeing people say after 760 is irrelevant. Nothing is irrelevant. The higher the score the better. You may get a great rate or the best rate at 760, but anything well above that could help in other regards. Don't discount how people can help you with exceptional scores. Some doors open with exceptional scores that are not open to others. And it seems that those who don't have 760+ scores who ae the ones always proclaiming it's nothing more than bragging rights. Far be it. 

 

Go for the highest score you can achieve.

FICO 8 Scores: TU: 826, EX: 811, EQ: 786
FICO 8 Score Goal: 800+ across the board by 12/31/15
My UTIL: less than 1%
2016 Goal: 850 or close on at least two CRA!!!
Message 8 of 16
Frequent Contributor

Re: What is ideal credit score to buy home?

+1
Agreed. Mortgage inquiry, new account to AAoA, new installment at high util will all hit when the deal is closes. Then you might find that you want to remodel or update appliances. Build whenever you can.

EX760 EQ731 TU741
Message 9 of 16
Established Contributor

Re: What is ideal credit score to buy home?

Sorry if I wasn't clear. I meant 760 mortgage scores. For those of you who say that above a 760 is not irrelevant I'm not seeing what the benefit is besides a buffer. Please educate what benefit having an 800 vs a 780 would bring. This person has great scores.

FICO- Experian: 797, TransUnion: 781, Equifax: 804 (Updated Monthly)
Message 10 of 16
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