Higher Credit Score Now Needed for Best Loans
At a time when people need more help than ever to buy or refinance a home loan, lenders have tightened the screws on qualifying. According to a recent article in Smart Money magazine, “Credit Scores: How 720 Became the New 680,” millions of folks who not long ago were eligible for the best rates and largest real estate loans are no longer considered in the top category.
This could cost thousands of additional dollars over the life of a loan. For some, it might mean they are prevented from buying the property they really want.
Hopefully, these changes will be short-lived when, in the future, lenders vie for borrowers and bring their qualifying standards back to reality.