Monday update and tips

Mortgage and Lending with Envision Mortgage Solutions
As a marketing person I am constantly involved in research to find the best resources and the best information to help me reach the next customer at the moment (or just before) they realize they will want help with a mortgage in my case for purchases or refinancing. One of the criteria we often count on is the FICO score. Naturally, talking to people with FICO scores above a certain level will help us to spend our time talking to more qualified individuals. Since we are given a limited amount of time each day, one must choose how best to use it in order to take care of business and family. Two years ago, 675 was the national average FICO score. However, in my research on prospects all around Chicagoland I discovered (actually calculated based upon credit bureau information) that Chicagoans on average are better with their money and at managing their credit that are people in other parts of the country. The Chicagoland FICO was 723 at the time. This is certainly good news overall for Realtors since these types of people are more likely to be home owners and repeat home buyers. Aren’t you glad you are a Realtor here in Chicagoland? I ran across an interesting number today… 692 is the national average FICO score today. So, while you would think that all these bankruptcies and foreclosures would have driven the score down over the past 12 – 18 months, it seems that something has offset all that negative information. Here are a couple of possibilities: 1st although roughly 20% of mortgages originated over the last 3 - 4 years are falling into foreclosure, there 80% of new homeowners who had the same loans but are holding it together and that good payment history may be helping credit profiles overall. 2nd depending on the circumstances surrounding a bankruptcy, in a very short time after discharge (taking all the right steps) one’s credit score can improve dramatically in as little as 30 days. I have seen FICO scores in the very low 500s jump to over 600 only 30 days after the discharge (as long as the credit bureaus are kept informed of the status and outcome of every trade line involved. I have information and can provide guidance to take someone from BK discharge to a FICO over 700 in less than 12 months, which is nice. You may be aware that for many lenders a BK represents a major risk for at least 2 and sometimes 3 years afterwards no matter what the actual FICO score is. Foreclosures are an additional risk for at least 3 years afterwards even under FHA guidelines which are much more generous in granting credit than other programs. -CSB

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