What your credit score means for your mortgage

Does your credit score affect getting a mortgage? It sure does. Here’s how and what to do about it.

Source: What your credit score means for your mortgage

When it comes to buying a house, your credit score is a lot like your old SAT score. A high one is a distinct advantage. A mediocre one isn’t the end of the world, because other factors matter too. But a very low score? Well … that’s a little harder to overcome. You might need a do-over.

Here’s the deal: your credit score—specifically your FICO score—is basically an assessment of how you handle debt. It tells lenders how dependable you’ll be at paying back a loan. That means your score can determine whether you’ll qualify for a mortgage at all, as well as which loan options might be available to you. And once you do qualify, it usually affects your interest rate, which determines…