What credit score do I need for the best mortgage rate, and how much does it matter?

For conventional loans, the best pricing generally starts around a 760 to 780 FICO score, with rates improving in tiers as your score rises. FHA loans allow scores as low as 500 to 580 but at higher cost. The difference is significant: the CFPB and Fannie Mae note that a borrower with a score in the low 600s can pay noticeably more in rate and mortgage insurance than one above 740, adding tens of thousands over the life of the loan. Before applying, pay down credit card balances to lower utilization, since that lifts scores fast, and avoid new credit. See how a mortgage inquiry and payoff moves your score with the Mortgage Credit Impact tool at wealthserene.com/tools/mortgage-credit-impact.