A credit score is a primary indicator of how likely borrowers will repay future debt. Mortgage lenders review your credit history by reviewing your credit report. This report gives an indication of how well you have paid your bills and other financial obligations in the past. Additionally, the report will show how much debt you already have, for example, your credit cards, car, student and other types of loans.
The most common credit score used by lenders is the FICO®score, which can range anywhere between 300 and 850. The higher the FICO credit score a borrower has, the better. Your FICO credit score will determine the amount of money you can borrow and the terms of your loan, including the interest rate and length of loan. Credit scores do vary and change.