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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