The Fico score used by Experian along with the other two credit scores created by other bureaus, is a more powerful influence in mortgage approval than ever before. Fico scores are now not only used to approve the loan but better scores get better rates.

Mortgage approvals are getting harder and harder to come by…even for the previous “good” borrower.

Lenders and the automated approval systems they use to approve borrowers underwent a major overhaul this month. On first blush one might think this was a knee-jerk reaction to the credit crunch, but there is more on deeper inspection. I also suspect that this is only the first salvo in an increasing tightening of mortgage lender standards across the board.