Daily Real Estate News  |  September 14, 2007

Tighter Mortgage Rules Keep Some Buyers Out
The time for a would-be home buyer to think about their credit score is long before applying for a mortgage.

Mortgage standards are getting tougher. To qualify for a lower rate, a borrower needs a credit score of at least 680, out of a possible 850, according to a consensus of lenders. Last year, consumers needed a credit score of at least 650.

Free credit reports are available online. The best sites offer results from all three credit reporting agencies, including Experian, TransUnion, and Equifax. One possibility is AnnualCreditReport.com.

Next, borrowers should check out their FICO score, provided by Fair Isaac. For $15.95, they can see how they rank.

To lift ratings, consumers should make on-time payments and keep their credit card balances below 35 percent of their limits.

Source: BusinessWeek, Emily Thornton and Lauren Young (09/17/07)