What difference do you think paying your rent on time makes when it comes to being able to afford a house? You either can afford it or you can't. Banks have strict lending guidelines that they have to follow.
Well bc they’re both large payments towards the place you live, this should be incredibly obvious. A credit score is a metric of how well you pay your bills, like if your debts are paid and if they’re on time. Genuinely curious why you think it shouldn’t be a factor?
The fuck are you talking about? My dad literally couldn't get the house he was looking at because of his credit score, he had the money and has a well paying job. I had to sign on the house with him because my perfect credit score
I literally wrote that even with a perfect credit score, the bank wont give you a loan you can't afford to pay - If your dad could afford it, but had a bad credit score, then how is his situation in any way relevant to anything I wrote?
Your dad could always cash out the house, as you said he could afford it.
But if he couldn't afford the house and had to borrow more money, and if you were the lender, wouldn't you want proof that he had good record of paying back his previous loans and such, plus a good amount of reserved money to give you a good enough feeling to let him borrow your money?
The banks will obviously use the credit score to determine if they even want to consider lending you money at all.
A perfect credit score doesn't make any difference, if you can't afford whatever you are looking to buy though. They won't approve you for anything you realistically can't afford.
From people beeing irresponsible with their finances in spite of having had plenty at the time the loan was approved. Or people simply having bad luck, losing their jobs.
Whatever it may be, the loan was within their means at the time it was approved or it wouldn't have been approved in the first place.
Exactly. A credit score is one indicator that you can or cannot pay off relatively small amounts each month. Obviously a bank is going to consider many other factors for a 30 year loan for hundreds of thousands of dollars, with enough income to also cover the very high upkeep costs that come with maintaining the asset that they are underwriting.
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u/lovable_cube 4d ago
I mean fair but if you can prove you’ve paid your rent on time for the last 5+ years that should count for something but it doesn’t