Loans By Kathy: High Credit Score Doesn't Guarantee Mortgage Approval

High Credit Score Doesn't Guarantee Mortgage Approval

A high credit score doesn't guarantee mortgage approval, but having a good score will at least get you past the first hurdle.  Lately, that is how I have been viewing the mortgage process, a series of hurdles on the way to finish line (closing table).  kathy sheehan


Depending on the financing program, a high credit score may be more closely scrutinized if there aren't many trade lines.  A trade line is the number of open and active accounts that are shown on the credit report.  It may be necessary to supplement the credit report by showing other types of accounts being paid on time such as rent, car insurance, utilities, cell phone, etc.  These accounts need to be listed in the borrower's name and must be able to show the canceled checks.


While more and more individuals are paying cash for their purchases it is still important to be abel to demonstrate a payment history on accounts if you want to be approved for a mortgage.

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Kathy Sheehan Senior Loan Officer






Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.


Comment balloon 10 commentsKathy Sheehan • November 05 2012 06:40PM


Kathy, I have run into this a few times in the last months and it really bothers me. People with good credit and little debt ought to be able to get a home mortgage. Something is wrong with this picture.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) about 6 years ago

People are often so surprised when they are rejected for credit even though they have a high credit score.  Borrowers have to remember that creditors look at a COMPLETE picture and the score is just one aspect of it.

Posted by Charita Cadenhead, Serving Jefferson and Shelby Counties (Alabama) (Keller Williams Realty) about 6 years ago

Good morning Kathy,

You are right..the credit score is just one of the many hurdles faced in obtaining a mortgage. It's only a snapshot of the event..they need to get all the snapshots of the event and put it together to get the complete picture!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) about 6 years ago

Debbie, it comes up more often than you would think!  

Charita, it comes as a surprise and usually an argument from the buyer.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago

Dorie, the biggest obstacle is when they can't prove rental history with canceled checks!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago

Hi Kathy -- nothing beats a strong mortgage pre-approval letter from a knowledgeable mortgage broker/lender when I represent a buyer or a seller ---- I need to know that a closing can take place on timely terms that the borrower understands.

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 about 6 years ago

Michael, that is absolutely right.  It is more than just a credit score.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago

I am sure you caught many by surprise with this post - I know it's more than a credit score, but I know many do not.

Thanks for the education!

Posted by Joy Daniels (Joy Daniels Real Estate Group, Ltd.) about 6 years ago

Always a pleasure Joy!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) about 6 years ago

Kathy  I found your blog via Joy Daniels.  I wish I knew more about the different aspects of our profession.  I always believed Underwriters lived in a dungeon!

Posted by John G. Johnston, An Exclusive Buyer's Agent ~ Westcliffe, CO (John G. Johnston & Associates, LLC) almost 6 years ago