The economic crisis had damaged the credit scores of many Americans, and as a result, those hoping to qualify for a new mortgage may not. In 2008, approximately 50 million consumers watched their credit scores drop by at least twenty points. Because lenders have increased their standards for acceptable scores, fewer people even qualify for a mortgage these days.
A November survey by the National Association of Realtors said that huge numbers of contracts fall through the cracks because of issues related to financing. If youre one of the many who lost points on your FICO score over the last few years, its important to remember that it takes time to rebuild that score. You have to get current on all of your debts, keep your credit card balances low, and work to carefully keep other dings from hitting your credit score. Even if you cant get your score as high as youd like, though, you can still apply for an FHA loan, as theyre often fairly open to dealing with people who have had extenuating circumstances.