Credit Score Crunch: The Hidden Gatekeeper of Your Dream Home

Data from the preceding years point to a stark difference in credit score's effect on the home loan approval process and interest rates. For applicants having a score  between 670-799, the rejection rate stands at 45%. In contrast, below this threshold, it becomes as high as 64%. On the other hand, the fair and high credit score applicants fall in the range of 800-850, with the rejection rate of only 29%. Further, those that have a yearly income of less than $40,000 are affected with a 59% rejection rate. Today's average mortgage rates hover around 6.73% for 30-year fixed loans. Experts suggest boosting scores so that borrowers increase their chances of approval and get better rates. Again, in these stringent lending standards, a good credit profile becomes vital for prospective homeowners. 
Source: Money.com