Qualify for a Refinance/Home Loan is not that difficult
Date: Thu, 06/30/2005 - 22:26
I've been viewing some of these posts and some people are in doubts.
Many banks out there such as BOA, Wells Fargo, World Savings offer very competitve home loans but the catch is that they deal with "A" paper. "A" paper is usually defined as having a credit score of 620-660+. So what about those who have low FICO scores?
Most people with low credit scores are subjected to shopping for a lender/broker to get a decent rate these days. The mortgage industry does require customers to have a minimum score of 500 to even qualify for a loan. Those with scores lower than 500 are led to believe that no loans/programs exsist but in reality there are ways to boost credit scores above 500 in many cases. There are certain incorrections on many credit reports that can be corrected with a very insightful analysis.
Anyone with a credit score of at least 500 should never be charged an interest rate over 7.5% - 8%
Many banks out there such as BOA, Wells Fargo, World Savings offer very competitve home loans but the catch is that they deal with "A" paper. "A" paper is usually defined as having a credit score of 620-660+. So what about those who have low FICO scores?
Most people with low credit scores are subjected to shopping for a lender/broker to get a decent rate these days. The mortgage industry does require customers to have a minimum score of 500 to even qualify for a loan. Those with scores lower than 500 are led to believe that no loans/programs exsist but in reality there are ways to boost credit scores above 500 in many cases. There are certain incorrections on many credit reports that can be corrected with a very insightful analysis.
Anyone with a credit score of at least 500 should never be charged an interest rate over 7.5% - 8%
Hi Kevin Welcome to the forums. It is the fact that the credi
Hi Kevin
Welcome to the forums. It is the fact that the credit score is the most important factor in analyzing the financial worthiness of an individual. People with lower credit score are sometimes left with no choice and they lack options. Only thing that they can establish their credit rating is by having a very good payment history. Apart from that, of course, if the credit report is showing errors, then it needs to be rectified at the earliest as it is considered to be detrimental.
Regards
Roxette
