Credit score range is a mystery to a lot of people. And is my credit score considered good? "Credit" is simply your reputation as a borrower…and "acceptable" credit is required to obtain a home loan. Your credit "scores" are determined by your borrowing history and they are reflected on your credit reports, which are used by the banks. There are three credit reporting agencies that the banks use to obtain your scores: Transunion, Experian and Equifax. And, by the way, you can go online and get a copy of your credit report from them.

What lenders want to know is that you have been borrowing and, more importantly, that you have been repaying debt in a timely manner. Oddly enough, if you have not been borrowing, then banks have nothing to go on and will not loan you money. So, it is important that you rack up at least some small debt, such as a credit card purchase, and then pay it off in order to "establish credit" that the banks can use.

We are frequently asked, "what constitutes a good credit score and is there a correlation between scores and interest rates? The answer is Yes!, and the better the score the better rates you will get.

Here are some generally acceptable scores:

For a Conventional loan: 640

For an FHA-insured loan: 620 and,

For VA-insured loan: 640 (620 for disabled vets)

Most credit scores run between 600 and 750 and scores above 720 are generally considered good.

Another question we hear is, whose credit score may be used to buy a home? That of the husband, the wife, or of some other person??

This is very simple: You have to use your own credit. The banks will only use the credit of the person or persons who have the income. You cannot use one person's income and another person's credit to qualify for a home loan.

And here is my tip: When a lender runs your credit it will typically drop your score 4-6 points. But your lender must check your scores to get a loan so you want to do it wisely. To avoid having your credit scores get dinged too much when they get checked, keep mortgage shopping to within 30 days of the first credit check.

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