Credit scores have always been an important number that affects homebuyers’ ability to qualify for mortgages and specific rates. Ever since the 2008 crash, the importance of credit scores in the home buying and loan qualification processes has reached an all time high. It is certainly an oversimplification to say that a high credit score usually results in qualification for a low rate, while a low credit score typically meant a higher rate or no qualification at all. But that statement is also generally true.
Credit scores, widely known as FICO scores, were originally established by Fair Isaac Corporation to provide lenders with a basis for measuring risk and loan eligibility for borrowers. Credit scores are calculated using sophisticated algorithms that analyze consumer credit behavior, which is recorded and monitored in credit reports produced by three organizations: Experian, Equifax and TransUnion. Credit scores range from 300 (not good) to 850 (excellent).
This fall, FICO is announcing revisions to the formula it uses to calculate people’s credit scores. For certain groups of consumers, the revisions will result in better credit scores and better chances for home shoppers to qualify for mortgages and lower rates. The new formula, named FICO 9, will include several changes, but the three revisions that are likely to have the biggest impact for homebuyers and loan seekers are:
Avelo Plans New Florida Nonstops Out Of ILM
Miriah Hamrick
-
Mar 30, 2023
|
|
Wawa Gas Station Proposal On City Planning Agenda
Staff Reports
-
Mar 30, 2023
|
|
Despite Banking Headwinds, NCino Reports Steady Growth In Sales
Jenny Callison
-
Mar 29, 2023
|
|
Riverfront Farmers’ Market Returns To Dock Street For 20th Season
Miriah Hamrick
-
Mar 29, 2023
|
|
Tech Roundup: New Software Platforms, STEM-ILM Event And Tech Awards Deadline
Johanna Cano
-
Mar 29, 2023
|
Book and media recommendations from Info Junkie Hoop Morgan, founder of The Forte Institute....
Doug Hamerski is a nephrologist who likes to spend his free time on other sciences, from circuity to radio. This pastime has now grown to a...
Areas throughout southern Brunswick County are seeing an increase in residents and development, leaving municipalities looking at how to pla...
The 2023 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.