So I have been in the process of getting a loan to purchase a home. 20% down, 15 yr mortgage, not at the edge of what I can afford. Lender (very local credit union) called today to say that I don't have a credit score and therefore needs to go up from 3.375% to 4.375% interest rate because they can't sell the loan to Fannie Mae, whom require a minimum score of 640. So what they are going to do is do a portfolio loan, albeit at a higher interest rate because it is "riskier."
Don't get it how a bank can put so much faith in a credit score when I own a home already, well above in savings compared to most anyone my age, don't owe any money to anyone, earn a very good salary, been employed at the same company for almost 9 years, and have never been late on any payments in the past on anything. Yet since FICO crystal ball didn't spit out a number they like it is now "risky". Should have been living my life all these years leasing a vehicle and live in an apartment and have 3-4 credit cards, but not own a [censored] thing of any value so I can get a better interest rate on a mortgage. Talk about a bunch of lazy bums too lazy to actually have to manually underwrite a mortgage loan.
Rant over. If you are wondering why I don't have a credit score I pay for everything with debit, cash or check. If I don't have the money I can't afford it with the lone exception being a house. When I get rich one of these days even the house won't be the exception.
Don't get it how a bank can put so much faith in a credit score when I own a home already, well above in savings compared to most anyone my age, don't owe any money to anyone, earn a very good salary, been employed at the same company for almost 9 years, and have never been late on any payments in the past on anything. Yet since FICO crystal ball didn't spit out a number they like it is now "risky". Should have been living my life all these years leasing a vehicle and live in an apartment and have 3-4 credit cards, but not own a [censored] thing of any value so I can get a better interest rate on a mortgage. Talk about a bunch of lazy bums too lazy to actually have to manually underwrite a mortgage loan.
Rant over. If you are wondering why I don't have a credit score I pay for everything with debit, cash or check. If I don't have the money I can't afford it with the lone exception being a house. When I get rich one of these days even the house won't be the exception.