Credit Scoring - Does It Matter?

If the borrower has a satisfactory credit history and the ability to pay timely payments, the borrower may be considered a prime borrower and rated as an “A” borrower. In this case the loan will be closed using standard mortgage documents referred to as “A paper”. If he does not qualify for an “A paper” loan, the borrower may seek financing with companies known as “sub prime lenders”. The mortgage industry has adopted a credit risk scoring method. Credit scores reflect credit patterns over t