The credit score attached to your name is something that can impact your life in many ways, and the main way it will impact you involves your ability to get loans. If you are considering borrowing money through a mortgage loan to buy a house, your credit may impact your ability to do so. Here are several things to understand about the way your credit can impact the mortgage process.

Your Credit Reveals How Creditworthy You Really Are

Most lenders do not seek to find out why your credit score is what it is. Instead, they simply look at the score you have and make judgements about your creditworthiness. This means that if you have a high score, they will instantly think you are worthy of getting approved for a loan. With a low credit score, they may consider you unworthy of borrowing money from them.

According to most charts, a credit score of 800 or higher is considered the best. This is an excellent score to have, while a score of 740 or above is considered very good. A score that is below 580 is the worst to have, as it is considered in the poor range.

Other Factors on Your Credit Report Also Impact Mortgages

There are a couple other factors from your credit report that can also impact your ability to get a mortgage. The first is bankruptcy. If you have a bankruptcy post on your report, it will require waiting a certain number of years before you can get a loan, and the time span varies depending on loan type. The other factor is a foreclosure. If you have a foreclosure on your report, it will also require waiting a period of time before you are eligible for a loan.

There Are Loan Options for All Credit Scores

The good news, though, is that there are all kinds of loan options you can get, and there are different ones for just about any credit score you may have. The key point to understand, though is that the terms of these loans will vary a lot and will be highly dependent upon your credit score and other factors related to your finances at this time.

A great step to take before getting a loan is finding out what your score is. If it is lower than you would like, take time to work on it before contacting a bank in your city.