When it comes to determining your mortgage rate, your credit score is a critical factor.
Think about it from the bank’s perspective. They are lending you money for 30 years. Over that time frame, you’ll likely change jobs, face tough times, watch your neighborhood change, and go through multiple market cycles. Your current financial picture – including down payment, assets, and income – are important. But a credit score gives the bank an idea about whether you’re likely to make payments responsibly even if things change.