For Mortgages, 620 Credit Score is New Magic Number
Whether you’re considering refinancing or getting a new loan, your
credit score is about to become more important than it’s ever been in
determining whether you qualify or not. According to lending experts,
the new benchmark of a 620 credit score will make qualifying for a
mortgage the most difficult it has been in decades.
Beginning
Nov. 1 or Dec. 12, depending on the type of loan, Fannie Mae is
tightening its lending standards to the 620 benchmark, even for loans
backed by the Federal Housing Administration and Veterans Affairs. What
that means is, borrowers with credit scores of less than 620 will find
it very difficult to qualify for a mortgage. To get the best rates and
save month on monthly payments, consumers will need credit scores of
about 720 and have a verifiable, steady income.
If
you would like more information on this, please give us a call. We work
with a variety of great lenders and mortgage brokers and would be happy
to refer you to someone we’ve had success with in recent sales.
The Fabulous Properties Team