What is your credit score not telling you?
Saturday, June 15, 2019
Today I want to speak about credit scores and how they never tell the whole story. I am not calling out credit scores and telling them that they are liars, but we often run into good credit scores that don't allow people to qualify for a loan. So we have a couple of clients right now with 700+ credit scores will not qualify for a loan and here are some of the reasons: - IRS or State tax liens that did not show up on the credit report, but they showed up when we found them under a public records search. - Clients with more than 1 mortgage late in the past 12 months - People with multiple NSF checks on their bank statements - We have some workarounds on this for sure like not showing the bank statements, but sometimes you need them or you delay the closing! - People with a Bankruptcy, Foreclosure, or Short sale where the timelines have not been met to get a new loan. So at the end of the day, a credit score is just a credit score for many and does not mean that you can get a loan! I did not mention income, but I thought that was pretty obvious. Keep in mind in all of the above situations there is likely a loan available, but those loans may require to have something paid, subordinated or a larger down payment. Mike Meena Augusta Financial 25129 The Old Road, Suite 350, Santa Clarita, CA 91381 Phone: 661-260-2970 Fax: 661-554-7121 Email - Mike@AugustaFinancial.com