Many aspiring homebuyers hesitate because they think their credit score has to be perfect to qualify for a mortgage. That belief can keep people on the sidelines longer than necessary, and it can shape how they approach buying their next home. But the widespread myth that only flawless credit unlocks homeownership simply isn’t true. Understanding how credit really works today will help buyers in Colorado move forward with confidence, and it will help sellers understand why more buyers may be ready than they expect.
The Myth: You Need a High Credit Score to Qualify
A common misconception is that you must have excellent credit to buy a home. According to a Bankrate survey, 42 percent of Americans believe excellent credit is required for mortgage approval. That belief keeps many would‑be buyers from even starting the process.
The truth is the typical homebuyer does have a strong credit score — but that doesn’t mean it’s an absolute requirement for everyone. The median credit score for recent homebuyers is around 775, according to data from the Federal Reserve Bank of New York, but you do not need a score that high to qualify for a mortgage.
Real Scores From Actual Homebuyers
Looking at real buyers from recent data, roughly 10 percent of them had credit scores in the mid‑600s — around 660 — and were still able to secure financing. That means some buyers are successfully purchasing homes without what many consider “excellent” credit.
Every lender has different standards and risk tolerances, and they consider factors beyond credit score, such as income stability, down payment size, and debt‑to‑income ratio. There is no single universal credit score cutoff that applies to every loan or lender.
Why This Myth Is So Persuasive
Many buyers see high average credit scores in national reports and assume that’s the minimum you need to qualify. In reality, that median score reflects what most people have when they buy, not what everyone must have. Lenders look at the whole financial profile, and they also offer a range of loan products that accommodate different credit levels.
For example, conventional loans often prefer scores above the mid‑600s, but government‑backed options like FHA or USDA loans may allow scores closer to the 580‑620 range depending on other financial factors. In some cases, lenders consider applicants with even lower scores if other criteria are strong.
What Buyers Should Know About Their Credit
If your credit score isn’t where you want it to be yet, that doesn’t automatically mean you can’t buy a home. Here’s what to understand:
• Mortgage qualification isn’t just about one number. Your overall financial profile matters, and lenders assess multiple factors before issuing a loan.
• Different loan programs have different score expectations. Some loans are designed to help buyers with lower credit scores or smaller down payments get into homeownership.
• You can still improve your credit. Paying bills on time, reducing debt, and avoiding new lines of credit right before applying for a mortgage can all help strengthen your score over time.
A common misstep is assuming you must wait until your credit hits a specific number before talking to a lender. That’s the myth in action. Having even a moderately good score paired with strong income and down payment funds can put you in a much stronger position than you think.
How This Helps Sellers, Too
For sellers in Colorado, understanding this credit score reality matters. More buyers than you might expect are genuinely qualified and ready to make offers, even if their credit isn’t perfect. Buyers with scores in the mid‑600s and above can still get financing and present competitive offers, especially when they’ve been pre‑approved.
This broader pool of qualified buyers can shorten time on market and reduce the number of deals that fall through at the financing stage. It also means pricing and presenting your home effectively remains key, because serious buyers come in with a solid understanding of what they can afford and how to secure financing.
Turning Misunderstanding Into Action
If you’re thinking about buying a home and credit has been holding you back, the first step is to learn your options. Connect with a trusted lender early to understand where you stand and what loan programs you might qualify for. A local lender can give you accurate guidance far beyond national averages.
Likewise, if you plan to sell, recognize that many buyers in the market today have taken steps to prepare financially, including reviewing credit reports and securing pre‑approvals. When you work with a knowledgeable agent, you’ll be able to identify and engage with these serious buyers effectively.
Your Next Step in Colorado Real Estate
Homes are about more than credit scores — they’re about what you want your life to look like next. Whether you’ve been waiting for your credit to “be perfect” or you’re ready to explore opportunities in 2026, the right team on your side makes all the difference.
At Corken + Company Real Estate Group, we help buyers and sellers understand not just the data, but how it applies to your specific goals here in Colorado. From financing strategies to market timing and negotiation guidance, we support you every step of the way.
Visit www.corken.co or call 303‑858‑8003 to start your conversation today.
