Definition of a Good Credit Score in 2011 | Irvine Real Estate – Irvine Homes for Sale

What is considered a good credit score these days? This is one of the most common questions we receive from our readers. And as we replace our 2010 calendars with new ones for 2011, this question will surely see a spike in frequency again.

So, in anticipation of all those emails, I thought I’d share my own definition of a good credit score in 2011:

Looking Back: A Credit Score History

Are credit scores really that important for home buyers? Yes. In fact, they are more important today than at any point in the last decade. If you bought a home in 2003, for example, your credit score would not have weighed as heavily toward the lender’s final decision. If you had good income and a decent down payment, you would’ve been approved for a loan — even if your credit score was lackluster.

Things have changed. In 2011, your credit score has the power to make or break the mortgage approval, all by itself. Lenders (and investors in the secondary mortgage market) are putting more emphasis on credit scores as a risk-management tool. So you can bet it’s one of the first things they’ll review when you submit your mortgage application. We’ve reverted back to an era of sensible lending, for the time being anyway

Check out this article on what a good score really is! What FICO scores are qualifying for loans now and in the future?