A number of mortgage applicants have found that obtaining approval for a home loan has become more challenging as of late, according to CNN.
The news source said many consumers are being turned down for a mortgage, despite having sufficient resources to afford it, because Fannie Mae and Freddie Mac have tightened their lending requirements.
In addition to the mortgage-backers raising their credit score minimum for borrowers in 2009 from 580 to 620, the news source says they have also been harsh on those who don't follow their guidelines perfectly.
"You can have one Fannie/Freddie guideline you violate and that gets you rejected," Alan Rosenbaum of GuardHill Financial, told CNN.
Consumers who have a poor credit score may think they have no shot at landing a mortgage with Fannie or Freddie, but that may not be the case. Some individuals may be suffering from a low credit score as a result of a credit reporting error, which if rectified, could lift their three-digit numbers to a more favorable level.
Finding an error may be as simple as reviewing a credit report and looking for any inaccurate or problematic items. Individuals who find a mark that they think is a mistake may benefit from contacting a credit repair company. In addition to having the expertise to make sure credit companies report information in compliance with federal rules, a credit lawyer may also be able to work with the credit bureaus to resolve the situation quickly and efficiently.