I have recently learned in the last few weeks that Equifax, Trans Union and Experian have changed their scoring models for mortgage lenders new criteria. Needless to say this was to be expected since the melt down of the sub prime market and all the foreclosures across the country.
Since this has happened, many peoples scores have dropped though nothing has changed on their part. They still pay their bills on time and not had any late payments, but their score has dropped by as much as 50 points. Part of this change has been due to the amount of available credit they have had, but not used. The unfortunate part is that if they are a homeowner and sell their home and purchase another home, they may not qualify for the new mortgage. I have seen this happen in North and South Carolina and I am sure it is happening where you live as well.
Before listing a home for sale, I would make sure your client has been recently pre-approved by their lender for the price point of their next home. I have heard clients say that they were pre-approved several months ago and should not be a problem, however it has been a problem and I am sure you don't want to make you client "homeless".
Comments(0)