Bucks County homeowners, the typical credit score may not be as much of a deciding factor in obtaining a mortgage loan anymore. This month FICO, the consumer credit analytics company, announced a new mortgage credit score that is said to be more predictive of mortgage loan behavior, and fairer to people with less information in typical credit reports. Lenders hope that it will give them a larger pool of people to be able to qualify for loans.
The FICO® Mortgage Score Powered by CoreLogic is supposed to take into consideration consumer behavior that is not being included in the “normal” credit scores through the three major credit reporting companies, Experian, TransUnion, and Equifax. CoreLogic provides more consumer information on payments such as rent, child support, and second mortgages.
Opinions about the new mortgage credit score vary. It is intended to give mortgage lenders more and better information, and this works in the favor of many people who do not have a strong amount of credit history. Since sometimes having no credit history is just as detrimental as having a bad credit history, younger people or those with no credit cards or loans have had trouble getting financing for a home. The new mortgage score takes into consideration other financial issues in a person’s history, and gives a better picture for the lender to consider.
On the other hand, these new financial reports dig deeper into consumers’ lives, giving more information and, what some say, seem to infringe on privacy. But most experts agree that in any case, consumers need to reevaluate their financial habits and get to know more about the new mortgage score.
The FICO website provides more information. This could be just the time for many of you, who might not have qualified in the past, to get that loan for a new Bucks County home. Please contact me if you are interested.
Comments(1)