[Caren]

...credit has changed? My husband and I bought our house almost 7 years ago. The mortgage is in his name. He was given a 6% interest. Since then we have dealt with income changes, medical bills and Hurricane Katrina. Needless to say our credit is less than stellar. We have paid off the old debts and our mortgage has been in good standing for 4 years. Credit card balances fluctuate depending on the current crisis weather it be replacing the AC or hot water heater, etc. Our income has nearly tripled since we bought the home and we have matured in our spending habits. Now, we may be moving for my husband's job. Since our credit is on the mend, can we still get a mortgage? We expect to have a higher interest rate but we would be humiliated if we were turned down. His company has a moving package and will pay our closing costs. Any advice is appreciated.

[Gorkbark Porkduke Gefunken Fubar]

Because of the financial crisis created by the banks in the first place and their subsequent tightening of lending requirements, very few people will be able to qualify for a mortgage any more. This makes a sham out of the whole idea of giving money to banks, because in a way this rewards them for their bad business decisions in the past, which were largely based on greed. Now, they are going to overreact and base their lending decisions on fear, and with the credit scores of millions of Americans heading tothe basement, very few will qualify under the new rules.