It’s smart to begin your search for a new home with a pre-approval letter. The pre-approval is more in-depth then a pre-qualification letter, which does not include a credit analysis. In order to provide a pre-approval, your lender will pull your credit, analyze your income and asset documentation, and calculate your debt-to-income ratio, resulting in a reasonably accurate estimate of your spending limitations. This will give you a good idea of what you can afford and may give you an advantage over the competition.
Paying off your mortgage is an exciting financial milestone. But, are you prepared to do it properly? Here’s a simple checklist to guide you through the process.
As former Fed Chairman, Ben Bernanke, recently found out firsthand, the mortgage process can be complicated and unforgiving. But when it comes to the credit report, are there still options to correct and improve initial findings so the end result might be loan approval or a better interest rate? Absolutely. One of the ways we accomplish this re-evaluation of the credit score is through a process known as a rapid rescore.
We asked our Chief Credit Officer, Gary Scoma, to break it down for us.
FICO is the most widely used credit score. The three major credit repositories, Equifax, Experian and Transunion, work with FICO to develop their scores. But, when it comes to mortgages, FICO is the only credit score that is considered. So, when FICO recently announced it was changing its scoring system, the resulting headlines caused some confusion and debate. Will FICO’s decision to recalculate credit ratings be a boon for the mortgage industry? Some say the changes will not impact consumer credit in any meaningful way. So, what’s the real story here?