700 credit score home loan: what it means for your mortgage options

Why a 700 matters

A 700 FICO signals reliable payment history and usually qualifies for conventional financing with competitive pricing. You may see slightly higher costs than the top tier, yet strong income, a sensible debt‑to‑income ratio, and a solid down payment can offset pricing hits.

Real‑world examples

A first‑time buyer putting 5% down at 700 often receives automated approval, pays private mortgage insurance, and can reduce PMI by choosing a higher premium now or making extra principal payments later. A move‑up buyer with 20% down and 700 may skip PMI entirely and trade a small lender credit for a marginally higher rate to cut cash due at closing.

• Conventional loans are common; FHA can help if DTI runs high or reserves are thin.
• Shop at least three lenders; pricing varies by loan size, property type, and points.
• Improve quickly: lower card utilization, correct report errors, avoid new inquiries.
• Consider paying points only if the break‑even horizon fits your plans.

Prepare documents, compare total cost of funds, and align your lock and closing timeline with your purchase contract.