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Are you thinking about purchasing a home in St. Louis? If so, it’s important to know what credit score you’ll need to qualify for a loan. After all, lenders are unlikely to approve your loan application if your credit score is lower than their minimum requirements. In this article, we’ll cover the credit score needed to buy a St. Louis home:
What is a Good Credit Score?
A good credit score is 700 or higher. The higher your credit score, the better. Having an excellent credit score gives you access to low-interest rates and more competitive loan terms from lenders. It also indicates that you’re responsible with your money and pay your bills on time. Most lenders believe that borrowers with excellent credit scores are less of a risk than those with lower scores.
In St. Louis, most lenders will require potential buyers to have a minimum FICO® Score of 680 or higher in order to be approved for a mortgage loan. This requirement may vary depending on the lender and the kind of loan you’re applying for; however, having at least a 680 FICO® Score will give you better chances of being approved for a mortgage loan.
How Can I Improve My Credit Score?
If your current credit score is lower than 680, there are steps you can take to improve it before applying for a mortgage loan in St. Louis. Here are a few:
Other Factors to Consider
In addition to credit scores, there are a few other factors that lenders consider when determining loan eligibility. These include debt-to-income ratio (DTI), income level, and other expenses like property taxes and insurance costs. To qualify for a loan, most lenders also require potential borrowers to have two years of steady employment and no recent bankruptcies or foreclosures on their record. All of these factors play a big role when determining whether or not you will be approved for a loan.
Buying a home in St. Louis requires good credit – at least a 680 FICO® Score or higher – in order to qualify for mortgages from most lenders in the area. If your current credit score doesn’t meet this requirement, there are steps you can take to improve it before applying for a mortgage loan such as paying off existing debt and reducing overall debt-to-income ratio. With some patience and dedication, it’s possible to raise your credit score high enough so that you can buy the home of your dreams.
If you’d like to get pre-qualified for a mortgage, you can do that here. If you want to talk more about mortgage options, or if there’s something else we can be of assistance with, please reach out to us: https://www.frontierhomemortgage.com/contact-us/