When it comes to mortgage approval, credit scores play a crucial role. Lenders use credit scores to assess the risk of lending money to potential homebuyers. A higher credit score indicates a lower risk, making it more likely for an individual to secure a mortgage with favorable terms.

For example, a borrower with a credit score of 750 is likely to receive a lower interest rate compared to someone with a score of 600. This can result in significant savings over the life of the loan. On the other hand, a low credit score can lead to higher interest rates or even rejection of the mortgage application.

References:

• Consumer Financial Protection Bureau - How do I improve my credit score?
• myFICO - Credit Scores