Wells Fargo has lowered its minimum credit score to 620 from 660, making it easier to qualify for a mortgage, the San Francisco Business Times Reported.
Lenders are easing their conservative standards because they face a more competitive environment. Lending demand has dropped nationally. First, Applications for purchase mortgages in April ran nearly 18% below the level of a year ago, even as the average loan amount on new applications hit a record high, reported the Wall Street Journal. Second, Wells Fargo and other lenders are casting a wider net for borrowers, because rising rates shut off the refinancing tap last year.
Local lenders haven’t experienced soft demand, as our local boom continues.
Photo credit: Flickr / Pavel P.
