Keller Williams Realty STL
Becky Scherzer, Keller Williams Realty STLPhone: (314) 677-6180
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Your credit score: Mortgage approval facts to know

by Becky Scherzer 09/25/2022

If you're planning to buy a house, managing your credit score is vital. Mortgage lenders use credit scores as a benchmark for qualification, and a lower score can hurt your chances of being approved for a mortgage.

Here are some more details about how credit scores affect your mortgage loan chances:



What should my score be before I apply for a regular mortgage?

The customary loan application process requires a credit score of at least 620. It's possible to get a mortgage with a lower score, but you may have a higher interest rate as a result.



How is your credit score determined for a mortgage?

The loan officer obtains a single credit report containing all three credit report types. The lenders may use your credit score or lower middle credit score to decide if a joint partner applies.



How can a good credit score help with mortgage approval?

Mortgage lenders require higher credit scores because they use it as a way to measure how well you handle outstanding debt. The higher your credit score is, the less risk you pose to their lending. You could end up saving thousands over the life of your loan and capitalize on a lower monthly payment.



Is it possible to get a home with bad credit?

It's possible to get a mortgage with a low credit score, but there are trade-offs to be aware of. With conventional loans, a lower credit score might require a higher down payment or private mortgage insurance.

Other loan options like VA loans or loans offered by the Federal Housing Administration have more flexibility when it comes to minimum credit score. However, these mortgage loans come with other specific requirements for approval.

Maintaining a good payment history and credit report will help you in more ways than just getting a mortgage. However, for a major purchase like a home, it's crucial to have the best possible financial standing before beginning the process.

About the Author
Author

Becky Scherzer

Welcome! Looking to buy or sell real estate in the St. Louis area, don’t look any further than Becky Scherzer and Scherzer Real Estate for all of your needs! My family and I have lived in the St. Louis area for more than 50 years, so I know the St. Louis area! In addition, I am a full-time agent with the #1 real estate office in the St. Louis area and the #1 real estate company in the country! My mission is to create a much different brand of real estate services, one that exceeds expectations, delivers results and exceptional service at a level never seen before in the industry. When you choose me to represent you in selling your home or buying a new home, I will work with you to an extent unmatched by any other Realtor. I invest a great deal of time, energy and money to ensure not only the highest sales price possible for your home or finding your new dream home, but that the process, your experience, is as smooth and stress-free as possible. I am fortunate to have the support of a group of highly trained professionals to assist me in ensuring a seamless, efficient and straightforward path to your success. I will continuously evolve to meet the challenges of our very dynamic, ever-changing market conditions. What will never change is my commitment to provide my clients the level of expertise and innovation they deserve. Getting great advice on selling your home or buying a new home is simple, JUST ASK me!