Today, David is talking about how over the past year, some 8 million consumers saw a boost in their credit score. The credit agencies reached a settlement with the Federal Government and had to change how they reported certain items. They can no longer report on non-loan related items, such as gym memberships, library fines, traffic fines, and insurance paid medical expenses. This is very important for a consumer who is looking to purchase a home. In the real estate industry, a consumer's credit score is used to determine their interest rate when getting a mortgage loan. The better the interest rate a consumer can get, the less money they will have to pay over the life of a mortgage loan.
As an example, if a consumer is trying to get a 30 year fixed mortgage and can improve their score from a Fair score (580-669) to a Good score (740-799), they can save around $30,000 over the life of the loan. The other benefit to having a good interest rate is you have better affordability: You are able to purchase more of a house then you could before.
Are you wanting to buy a house and want to see if your credit received a boost? Contact us, and we can refer you to one of our Preferred Lenders.
