A mortgage agent has submitted an application for a client, Sarah, who has a credit score of 625. For an A-lender, what is the typical classification of this beacon score, and what are the implications?

Question: A mortgage agent has submitted an application for a client, Sarah, who has a credit score of 625. For an A-lender, what is the typical classification of this beacon score, and what are the implications?

Answer options:

• Prime tier, suggesting excellent credit and broad lender options.
• Mid-prime tier, indicating good credit but potentially higher rates or limited options. ✅ Sub-prime tier, often requiring B-lender or private lending solutions.
• Unacceptable tier, likely leading to outright refusal from most lenders.

Correct answer: Sub-prime tier, often requiring B-lender or private lending solutions.

Explanation: A credit score of 625 generally falls into the sub-prime tier for A-lenders, meaning it might be difficult to qualify with them and could require seeking B-lenders or private lenders, or accepting higher rates.