In the past, getting a mortgage with excellent credit was a cake walk. It got even easier in the early part of the decade when lenders would finance anyone with a pulse. Good credit, bad credit or excellent credit; all could get mortgage loans. Lenders were counting on real estate appreciation to cover any defaults, so traditional lending guidelines went right out the window.
Now the chickens are coming home to roost, as mortgage default rates have soared to all time highs. That has lenders questioning the wisdom of getting so fast and loose with the rules. Sadly for those with good to excellent credit scores, lenders have not restricted their focus to traditional problem borrowers when reevaluating their lending policies. Even those in the upper end of the credit scoring strata have been caught up in the net.
What can you if you're one of those with excellent credit that's had problems finding a mortgage or other loan? There are some simple step you can take to ensure you'll not only be considered, but actually get the best loan.
1) Number one on your to do list of things to do to get the best mortgage or any other loan should be getting a copy of your credit report. Without this vital report you'll not know the state of your credit. Knowing your credit score is the absolute first step you should take before you get a loan. This way you can negotiate from a position of strength, and you can be sure the loan you get is appropriate for your excellent credit rating.
2) The second thing to do to make sure you get the best loan is to raise your credit score as high as possible. Often a jump of only a few points, even if you have good to excellent credit, can get you a significantly better loan.
3) After you have taken these steps, you want to focus on choosing the proper lender. Find a lender that specializes in servicing only borrowers with excellent credit. Many lenders originate mortgages and other loans for borrowers with credit that falls a bit short of excellent. That means that borrowers with excellent credit subsidize some of the costs associated with those borrowers, either directly or indirectly.
If you follow these three steps, you'll have the best chance of getting not only the lowest interest rate, but the best fee structure, and the shortest processing time.