A Mortgage Lender Example:  ABC Mortgage

ABC Mortgage was a lender that specialized in both traditional and non-traditional mortgage products. They worked with borrowers with a wide variety of credit histories and financial profiles. When qualifying a client's application for a mortgage one of the first things that they look at is the applicant's credit history and FICO score. The information provided by these two items help ABC Mortgage to determine the credit risk that the applicant is, as well as for which mortgage program qualified.

Janet’s Story:  Her Dream to Own a Home

Janet had always dreamed of owning her own home. However, at the age of 33 she found herself divorced with two kids and living in an apartment. She had struggled in the past with credit card debt, but she was making positive strides at reducing her credit card balances.

Chris’ Story:  How his Loan Helped

Chris was a college grad student. He had impaired his credit rating by wild spending sprees during his undergraduate education. Since then, he had worked to pay down this debt and repair his credit. However, his credit rating was still slightly under 680.

The Hanson’s Story: Refinancing Helped

The Hanson's son was going off to college in three months, but they didn't have the money to cover his tuition. They did, have a significant amount of equity built up in their home. The Hanson’s decided to refinance their home in order to cash out their equity. At the lender's office, the lender told the Hanson’s that their credit was not bad, but it was also not high enough to qualify for a prime rate mortgage. Fortunately, they did qualify for a bad credit mortgage refinance program.