Credit Requirements
June 24, 2006 by Site Supervisor
Filed under Calculating Costs
It goes without saying that knowing your credit standing is important. Credit plays a major role in the construction process; obtaining loans, qualifying for a good rates on insurance and being extended credit by local suppliers are all are impacted by credit rating. Since most construction lenders require a 620 credit score or better for qualification, it’s important to know your standing before applying for a loan. Some niche lenders will loan on scores less than 620. These loans typically charge higher interest rates and substantial equity or money down is required.
Even if a person has a 620 credit score they still can be denied a loan if their mortgage is reporting a 30 day late in the last year on either a first or second mortgage, HELOCs included.
If you have questions about your credit or haven’t applied for a loan lately it’s well advised to pull a credit report. If you would like to learn more about credit facts and fallacies visit www.MyFico.com
The Modern Builder endorses MyFico.com as the best online credit information source and an excellent resource for credit resolution.