How important is building a relationship with your bank?

[Rashad Walser]

I have bad credit right now, I’m recently recovered from Alcoholism and starting to get my life back on track. How important is building a good relationship with my bank? Will they offer me a loan after having multiple accounts with them and establishing a line of credit with them? With a credit score of 650?

[James Wise]

Originally posted by @Rashad Walser:

I have bad credit right now, I’m recently recovered from Alcoholism and starting to get my life back on track. How important is building a good relationship with my bank? Will they offer me a loan after having multiple accounts with them and establishing a line of credit with them? With a credit score of 650?

Loans are usually sold after they are originated. Gone are the days of personal relationships. Borrowers need to be meet a general level of criteria to be approved. Essentially the underwriters need to check off the boxes to originate a loan that can be sold. So to answer your specific question, not important at all. What you need to do is just continue to work on your credit and debt to income ratio. That's the only thing you can do to sway a bank. That said with a 650 score you shouldn't have a problem getting approved for a conventional or FHA loan so long as your debt to income ratio meets the threshold of acceptability.