Mortgage Refinancing & Credit Scores

One of the greatest financial myths out there is that you need a perfect credit score to quality for a low-rate loan from a bank. Whenever I hear this line of thinking, I am reminded of the Robert Frost quote, "A bank is an institution that will only lend you an umbrella when it's not raining." And a similar thought was echoed by Mark Twain when he commented that The Bank of England would only lend money to gentlemen who could prove that they didn't need it. And many people who have tried to get a loan in the past three years have been tragically surprised by the lofty lending standards in a post-credit crunch world. But, in the interest of playing the devil's advocate, I'd like to point out that a less than perfect credit score may still enable you to receive favorable terms on a loan or refinancing. The most important thing to a bank is your ability to pay them back. So if you can prove to the back that you have always paid your bills on time, have steady income, and haven't shown a tendency to abuse credit in recent years, then you should be putting yourself in a position to receive favorable terms on a loan. TFB at The Finance Buff recently wrote a great personal anecdote about refinancing without a perfect credit score, and I recommend that you checkout his article by visiting the link here: http://thefinancebuff.com/a-high-credit-score-is-not-necessary-for-the-best-loan-rate.html .