First-time homebuyers should have a decent credit score. Decent means anything above 610.
Here’s a more detailed breakdown:
- 781 to 850. Excellent.
- 661 to 780. Good.
- 610 to 660. Fair.
- 500 to 610. Poor.
- 300 to 499. Very poor.
If the credit score is low, then first-time homebuyers should have a sizeable deposit to compensate for this.
You can find out your credit score by getting prequalified with ooba Home Loans. Prequalification helps you determine your likelihood of qualifying for a home loan and how much you can afford.
Some banks are more likely to grant home loans to lower credit scores. You can improve your chances by applying to multiple banks with ooba Home Loans.