For many people, buying a home is the biggest purchase they will ever make. It's also one of the most exciting. But before you start house hunting, you need to make sure your finances are in order. In particular, you need to know what your credit score is and whether it's high enough to qualify you for a mortgage.

Typically, the minimum credit score for a conventional loan is 640. However, there are some lenders who have different programs for buyers with credit scores lower than that. You also may be closer than you think to being able to purchase a home. We suggest getting in touch with a local lender to see how close you are to being able to buy a home and what you may need to do to get there.

What is a Credit Score?

A credit score is a number that reflects the information in your credit report. The three main credit bureaus—Experian, TransUnion, and Equifax—all use slightly different methods to calculate your score, but they all consider the same basic information from your report. This includes things like your payment history, outstanding debt, and the length of your credit history.

Your payment history makes up the single largest factor in your credit score—35% of it, in fact. This means that paying your bills on time is essential if you want a good credit score. Outstanding debt makes up another 30%, which is why it's important not to carry too much debt relative to your income. The remaining factors are the length of your credit history (15%), new credit (10%), and the types of credit you have (10%).

What's Considered a Good Credit Score?

A "good" credit score typically falls somewhere between 670 and 739 on the FICO scale, which ranges from 300 (very poor) all the way up to 850 (excellent). If your score falls below 670, it's considered "fair" rather than "good." anything above 740 is very good or excellent. Of course, these aren't hard-and-fast rules; every lender has their own guidelines when it comes to approving loans.

Your credit score is an important factor in whether or not you'll be approved for a mortgage—but it's not the only factor. If your score isn't as high as you'd like it to be, talk to a local lender about what other options might be available to you. With time and effort, you may be able to qualify for a loan sooner than you think!