The Average Credit Score of Homebuyers

Lenders use a combination of factors to determine whether to approve or deny you for a home loan, including your credit score. Each lender may set its own credit score requirements, but knowing the average credit score among home buyers can help you assess your chances of obtaining a loan.

Ideal Credit Score

Credit scores range from 300 to 850. Though each lender has its own definition of what constitutes an ideal credit score, a score of 700 or higher significantly increases your chances of obtaining a mortgage loan. A score of at least 720 typically makes you a desirable loan candidate in lenders' eyes because they don't distinguish between a score of 720 and a score of, say, 830, according to Ray Martin, the financial advisor for CBS' "The Early Show." Only about 13 percent of people have credit scores of 800 or higher, though, so this is not typical among home buyers.

National Average

The average credit score in the United States is 692 as of 2011, meaning that most consumers have credit scores that are slightly lower than the ideal of 700 for obtaining a home loan. This average includes particularly low scores as well as particularly high scores, though, so it doesn't reflect the scores of most Americans; almost 60 percent of Americans have scores about 700, according to the Money-Zine financial planning guide. According to the Home Buying Institute, lenders are less likely to approve you for a mortgage loan if your credit score is below 620, so the average credit score for home buyers is likely between 620 and 850.

State Averages

Credit scores vary by region, so the national average may be higher or lower than the average in your state. For example, New Englanders have the highest credit scores in the nation as of 2011, with scores averaging 712. Residents in Oklahoma, Arkansas, Texas and Louisiana have average credit scores of 673, the lowest in the nation. Check your credit score against the average where you live using Experian's National Score Index. It can give you a clearer picture of what mortgage lenders in your area expect from loan candidates.

Helping Your Chances

Before you apply for a home loan, check your credit report and score to see where you stand. The three major credit reporting agencies, Equifax, TransUnion and Experian, each provide a free credit report once a year for everyone. You can get your score free for a seven-day trial of a credit-monitoring service or pay up to $39.95. If your score is below 700, pay off debts to reduce your debt-to-income ratio -- thereby increasing your credit score -- and avoid closing paid-off credit card accounts until after you obtain a home loan. Keeping an account open increases your available credit, making your credit-to-debt income more favorable to lenders. If your score is above 700 but below 720, take these same steps to make yourself even more appealing as a loan candidate.