If you are applying for a home loan you know that one of the things that you have to really have is a good credit score. Unfortunately, the most common information that you meet is that no application for a home loan would get approval if the your score is below 700, worse, there are some news articles which report a credit score of 740 is the limit.
With the current economy’s situation right now, it is logical that everyone is feeling the pinch, but this does not mean that lenders are no longer willing to take a second look at applications for new home buyers.
To dispel the rumours flying around, no, the credit rating of 740 is definitely not the limit for ALL lenders. In fact, there are lenders out there that accept a 600 score. This means that lenders are not really looking so much at the score but are now looking at the individual applicants and their capacity to pay.
You have to realize that lenders exist for the sole purpose of looking for clients. They cannot continue to survive if they do not have loan applicants. They have money to lend out, they cannot afford not to lend them out. It is that simple. This means that if your credit score is 680 or lower, you have a good chance of getting a home loan approval.
Definitely there are lenders out there that will require the high scores, but this does not mean that there are no lenders out there that will consider the lower scores. So before you get depressed and start giving up your dream of owning your own home, it is best that you do a little research first and find out what lenders out there are requiring from you regarding credit scores.