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Credit Score Especially Important In This Lending Climate

By
Real Estate Agent with Buyers Brokers Only, LLC

With all the recent foreclosures blamed on subprime lending (loans to those individuals with less than good credit), a solid credit score is increasingly necessary to not only get a home loan, but to get a lower interest rate.

Some mortgage brokers are using tighter lending standards and lower credit scores as an excuse to put borrowers in higher-rate mortgages. In some cases it is justified, but not all cases. Recently rising mortgage interest rates makes it even more important to shop around for the best rate and terms.

USA Today reported on July 2, 2007 about this topic.

"In response to a sharp rise in foreclosures, mortgage lenders have tightened their standards, leading to an increase in rejected applications."

You can obtain your credit report, not your score, for free at http://www.annualcreditreport.com. You'll have to purchase your credit score, usually between $5 and $10.

"In addition, interest rates have been rising in recent weeks, so even if you qualify for a mortgage, you'll probably pay more for it. That means it's more important than ever to make sure your credit score is in good shape."

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Debbie Cook
Long & Foster Real Estate, Inc - Silver Spring, MD
Silver Spring and Takoma Park Maryland Real Estate
For $39.00 or $49.00 you can get all three FICO credit scores at www.myfico.com. (be sure to get the FICO - 12 report) Will also give you the 12 negative reasons for your credit scores.  This is very close to same information the lenders get!
Aug 04, 2007 02:56 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Never been as important as now.  We really need to be proactive up front in order to avoid taking deals that wall street won't buy.
Aug 04, 2007 02:58 AM
» Bill Burress Nationwide Mortgage Originator
» Bill Burress Nationwide Mortgage Originator - Fort Myers, FL

Richard:

Amen brother.  Scores are very important.  Scores are a starting point of qualification.  If the borrower doesn't meet the threshold score for a particular program then they cannot be approved for the program.  I am so glad I'm a mortgage broker and not a banker.

Aug 04, 2007 03:12 AM
New Jersey Real Estate James Boyer Morris, Essex & Union County NJ Realtor
RE/MAX Properties Unlimited, Real Estate - Morristown, NJ
I wish some of the would be buyers would get a clue.  There are so many people out their that just plain are in the dark on credit scores.
Aug 04, 2007 04:11 AM