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Credit Scores Shouldn’t Be the Only Factor

In most cases, that is the primary factor that gets you in the door. Sometimes misleading and unfair.

In most cases, that is the primary factor that gets you in the door. Sometimes misleading and unfair.

A previous client called saying that he needed to get prequalified for a new mortgage. He indicated that he was selling his Tolland home that I did the mortgage for six years earlier. He already had the buyer. When I did a credit report, his mid credit score was 571, quite a bit below most lenders minimum requirement.

He had perfect credit history on the mortgage and his auto loan, but credit cards, well not so good. He was purchasing a home for $320,000 and would be putting $100,000 down, from the sale of his present home. I was able to get him an FHA mortgage, at 4% interest. I apologized to him, that I couldn’t get him a better rate. He laughed, saying that is nearly 3% lower than the mortgage on his present home.

One thing I know for sure, he will always pay his mortgage on time, but I would never bet on his credit cards being paid on time.

Check out this article for some facts and fiction regarding credit:

 Credit score facts & fallacies By: MyFico

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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