Here's some great news for Charlotte home buyers who have postponed or even given up on the home of their dreams. FICO ( Fair Isaac Corporation), the company that analyzes and scores consumers' ability to manage debt, is revising its credit scoring sysem. The goal is to make consumer credit scores more fair and more representative of a consumer's record of paying bills. The expected impact of this change will not only be that more potential home buyers will qualify for a mortgage, but many more will be assigned higher credit scores, which will lower monthly payments.
The changes that are in the works sound reasonble and fair. FICO's software is being modified to reduce the impact of overdue medical expenses, a sore point for many otherwise credit-worthy consumers, as well as debts that were once formerly delinquent and reported to collection agencies, but have since been paid off.
This revised approach to analyzing and reporting on consumer debt is welcome news to home buyers, their agents, and to mortgage lenders, who want to use the most accurate criteria in making loan decisions. National Association of REALTORS® President Steve Brown said, “This move will ultimately make a real difference in the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher mortgage interest rates because of flawed credit scores.”
Understanding and managing your credit score is a vital part of the homebuying experience. That's why we provide resources to our clients so they can learn more about credit scores. At http://carolinabuyersagent.com/mortgage-lenders/ we explain how we can help you obtain the best mortgage deal, through a feature we call our Interest Rate Guarantee,which you can read about at http://carolinabuyersagent.com/mortgage-lenders/#guarantee.
Comments(0)