Good credit is the “Golden Key”. Whether you agree or not, an individual’s credit score is a driving force in our society today. Whether you are applying for a home loan, looking to rent a home or apartment, financing a new or used car, getting insurance for that car and even when applying for certain jobs, your credit history and credit scores matter.

When it comes to obtaining a Pre-Approval for a mortgage loan, and ultimately receiving a final loan approval, a borrower’s credit history and score are heavily weighed. When an individual applies for a car loan, the dealer, bank or credit union may obtain your credit history and score from just one of the 3 main credit repositories (aka, “Credit Bureaus”), Trans Union, Equifax, and Experian. However, when applying for a mortgage loan, mortgage lenders will obtain a credit report that accesses all 3 of the major credit bureaus. Your credit history and score are probably never more important to you than when applying for a mortgage loan.

A mortgage pre-approval requires that the lender obtain a current credit report on each potential borrower. If a borrower’s credit history and score is not sufficient to obtain a pre-approval, for any number of reasons ranging from low credit scores, to a lack of credit score, to a major derogatory event such as a bankruptcy, foreclosure or short sale, the lender will notify the applicant of their denial due to credit. Lenders must abide by various federal laws and regulations that are in place to ensure that consumers are treated fairly and not discriminated against or the lender will be subject to fines and penalties. As you might expect, most lenders, including Axia, will have policies and procedures in place to ensure such compliance.

However, going beyond what is required is what we at Axia will do. While we hope that all of our applicants will be able to qualify for a mortgage, for those that don’t, I can provide guidance to help you get your credit back on track so that you can qualify for a mortgage in the future.