What Credit Score Do You Need to Buy a Home in Las Vegas?

You’re ready to break the endless cycle of renting and invest in your future by buying a home. It’s an exciting time, but you may have some apprehension about your credit score. What does it need to be? Can you still buy a home if it isn’t great? The truth is, your credit score is important, but it doesn’t have to be perfect to buy a home in Las Vegas. 

Take a minute to explore credit score ranges, what credit score you need to buy a home, and how you can build (or rebuild) your credit. If you have additional questions, contact the team at Touchstone Living. We are a trusted resource for first-time homebuyers in Las Vegas. We are here to make homeownership possible for you!

If you want to know how likely you are to qualify for a home mortgage, the first step is finding your credit score. It’s pretty easy, just try one of the following methods:

• Online portal: Go to your bank or credit card app and look for a free credit score tool.
• Bank statements: Some banks actually print your credit score on statements.
• Main credit bureaus: The big credit bureaus, like Equifax and Experian, let you create free accounts so you can view your score. With one of these accounts, you’ll be able to track your financial health and take actions like freezing or unfreezing your credit.

Thankfully, just checking your credit score is considered a soft inquiry and won’t lower your number. Go ahead and check your score whenever you like. 

FICO Scores are the industry standard, used by the vast majority of U.S. lenders. Your credit score is reported on a scale from 300 to 850 and falls into one of the following classifications:

Your score is calculated using data from the three major credit bureaus and predicts your ability to repay a loan on time. A higher score means you’re more likely to be approved and eligible for favorable interest rates. Even so, it’s important to note that you don’t have to land in the upper ranges to be considered for a home loan. 

We’ve established that you don’t need a pristine credit score in the 800s to buy a home in Las Vegas. But what credit score do you need for a home loan? While each lender may be slightly different, here are some general guidelines based on loan type:

• Conventional loans: Typically require a minimum score of 620
• FHA loans: Allow scores under 600, but may require a larger down payment
• VA and USDA loans: No strict government minimum, but private lenders prefer a score of 620 or higher. VA loans are a great choice for active-duty military, veterans, and surviving spouses who meet the minimum requirements

Scores above 700 will typically unlock the lowest interest rates and best financial terms. However, even if your score is below that number, you can still get great rates and other incentives by working with a builder like Touchstone Living that specializes in helping first-time home buyers. 

A low credit score shouldn’t end your dream of homeownership. Instead, it’s an opportunity to make positive life changes that will improve your credit and get you ready to buy. Here are a few ways you can build your credit and boost your score:

• Review credit reports and dispute errors. Even seemingly minor mistakes can impact your score.
• Pay your bills on time. Payment history makes up a big part of your score, so be diligent about payments.
• Maintain a low credit utilization score. Look at the total credit available to you across accounts and try to use 30% or less of that number.
• Open a secured credit card. These cards require a refundable deposit as collateral. If you’re unable to make payments, the issuer will use the deposit to cover what you owe. Improve your score by paying your bill on time every month.
• Join a credit card account in good standing. You don’t have to be the primary account holder to build credit. The history and credit utilization will be reflected in your credit profile.
• Don’t automatically close accounts you’re not using. Having older accounts in good standing lengthens your credit history and positively impacts your score. 

If you’re worried about your credit score and not sure if you can buy a new home in Las Vegas, turn to the talented team at Touchstone Living. We’ll discuss your options and any available programs and promotions that can help make your dream of homeownership a reality. Contact us to get started and tour our stunning Las Vegas neighborhoods.