Do They Qualify for Lower Interest Rates?

The good news is interest rates keep on falling, opening up opportunities for those looking to purchase or refinance. The bad news is that qualifying buyers for these lower interest rate loans is becoming increasingly more difficult.

As we introduced to you in an article back in March of 2008, banks/lenders started implementing “risk based pricing”; which states the lower the credit score and lower the down payment/equity in the property, the higher your interest rate.

http://rismedia.com/wp/2008-02-29/fannie-and-freddie-fan-the-flames/

Since this article was published, banks/lenders have tightened the screws even more. In order to qualify for the premium interest rates, the credit score needs to be in the 720 range along with 25%-30% down payment/equity in the transaction.

Make your life easier; have the buyer’s credit pulled early enough so as to help mitigate any qualifying issues further along in the process.