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Your credit score is one of the most important considerations in the home-buying process, determining not only the approval of a mortgage, but also the rate attached to it.
As a first-time homebuyer, you may be wondering what the ideal score is. A recent update from the Ellie Mae Millennial Tracker™ may shed some light on the answer.
According to the Tracker, the average FICO score of a millennial borrower who closed on a home loan this summer was 723; the average FICO score of a millennial borrower who closed on a conventional loan, however, was 748. The average FICO score of a millennial borrower who closed on an FHA loan this summer was lower, at 691. The majority of millennials in Ellie Mae's Tracker obtained a conventional loan.
"Economic uncertainty may be contributing to a general tightening of credit, which could explain why we are seeing a slight uptick in the average FICO scores for closed loans to millennials," s...
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