As you shop for a home mortgage to buy your new home or refinance your existing home loan, you'll want to know ahead of time what to expect. As the mortgage crisis has made it more and more difficult for people to get approved for a loan, there are millions of people who's credit just is not good enough to get approved. That puts the home owner and the lender in a difficult position, which can be avoided.
In the past, a score in the 680 range would allow you to get approved for great rates without a problem. Especially if you had the down payment funds available, banks were happy to lend money to you. Now, after the mortgage crisis, lenders do not have that same flexibility. The people with a 680 score would probably not be able to get approved at today's standards. Instead, a 760 score looks to be the new standard.
That leaves those with lower credit scores in a position where they have to make a tough decision. If they are proactive and find out where they currently stand on the credit score scale before trying to get approved for a new home loan, they could fix the problem. By using some of the simple strategies to increase your score, you could have high enough credit in no time.
The other option is to seek a hard money lender, which should be a last resort effort. Most financial advisors would recommend renting over using hard money since the rates will be so high. By paying such incredibly high interest rates, you eliminate any of the benefits of being a home owner in America.