The Relationship between Credit Scores and Mortgages
Posted on | October 16, 2009 | No Comments
In the good old days, you would go down and talk to your local banker who has known you and your family for forever and you would let him know where you were working and how much money you made. After he asks you a couple of questions he would tell you to go find a house in a given price range and come on back in when you were ready to close. Well, the good old days has slowly changed into what we have today, which in neither good nor bad, just different.
Today, most of you don’t have this type of relationship with a banker and, even if you do, he has a bunch of rules and regulations that has to be followed and really has no say about what you can or can’t borrow for a house or anything else. Part of the system to judge whether you are good for the payment is by judging your credit. Many people have either made a mistake or two or had a period of bad times that hit and have affected their credit score so even if they are not serial non-payers, they will have a hard time getting loans under these regulations. It’s a flawed system but so far it’s what we have to judge mass borrowing. Most banks will lend to those with a 640 mid score or better and mortgage companies a 620 mid score or better.
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