Credit scores are an extremely important part of the underwriting process. They provide an objective way of interpreting credit reports, because the same standards apply to everyone and every factor is accessed equally for every consumer, every time. Today, many lenders use what is called automated underwriting, which is a computer-based process that evaluates your loan application objectively and within minutes. Again, it is objective because the same standards apply to every loan application. Automated underwriting results in an electronic recommendation, which lenders use along with other information gathered to create a full picture of your loan application to make a final decision on your loan.
Credit scores play a huge role in the underwriting process.
The miminum credit score for conventional lenders is 640. The Caution means either a higher interest rate or more points . The risk of foreclosure is statistically high for people with credit scores under 620. Generally, conventional lenders will not underwrite loans with scores under 620. Additionally, credit scores will also play a large part in how much you might qualify for.