The number of home foreclosures here and across the country have drastically altered the way that lenders do business. And it all has to do with your credit score - what's called your FICO score.
"Used to be, three years ago, if you had a 680 FICO score you wouldn't have to give us tax returns, pay stubs, bank statements. We would just pat you on the back and give you a loan at a 680 FICO score and say go pick out a house,” said Senior Loan Consultant Darron Carson.
The new restrictions do not mean you won't qualify - they just mean you may have to pay more interest on your loan.
"So now, everything is tiered. Everything is based on a tiered system that Fannie Mae and Freddie Mac have adjusted for all lenders across the nation. So you can still have a six 60 FICO score but the cost to get that interest rate would differ versus somebody who has a 740 or higher FICO score."
It is possible to get your FICO score - your credit rating - on line. The problem is - it will be a different score than your lender might have.
"The best way to do, to get your credit score and know exactly what it's going to be and how your credit is affected or how it's been the last ten years is to go to a mortgage bank and have them pull the three repository credit report for you."
And that credit score can vary from the beginning of the mortgage loan process until the end when the lender checks your credit score one week before the loan closes.
"We will re-pull your credit again. That will dramatically affect how you'll get the loan, what happens with your pricing - if you've gone out and bought a new washer and dryer, a new big screen TV for your home because you're so excited and you've charged that, that will affect your credit score,” said Carson.
