home loan 690 credit score insights and practical approval tips

What a 690 score means for your mortgage

A 690 credit score is generally considered fair-to-good and can qualify for many conventional and FHA loans. You’ll likely see competitive, but not top-tier, rates. Lenders will weigh your debt-to-income ratio, employment stability, and cash reserves alongside credit. A slightly larger down payment-often 5% to 10%-can offset risk and improve pricing.

Strengthen your file before applying

Small moves can shift pricing tiers. Reducing revolving balances to keep utilization under 30% may add points quickly. Avoid new credit inquiries, and correct any reporting errors early. Rate quotes vary by lender, so shop widely and compare the full cost-rate, points, and mortgage insurance.

• Pay down cards right before the lender’s credit pull.
• Ask about lender credits versus paying points to buy down the rate.
• Consider FHA if your DTI is high; choose conventional if you can avoid long-term PMI.
• Request a rescoring review after disputes are resolved.
• Lock strategically, but float if you have time and improving credit.

Costs, PMI, and savings

At 690, expect PMI with less than 20% down. Even a 10–20 point bump can lower PMI and rate tiers. Keep documents ready-W-2s, pay stubs, assets-to secure a strong, fast pre-approval.

Next steps

Gather documentation, get pre-approved with two to three lenders, and model scenarios for down payment, points, and PMI to find your best-fit path.