Over the years, the secret behind how your credit score is calculated and how different “what ifs?” affect it have been guarded better than the Bush’s baked beans recipe . That is until recently as FICO has shared how different “what if?” scenarios can affect your credit scores .
Did you max out your Macy’s card over Christmas? Expect a credit drop of 10 to 45 points. Did you get behind and had to make a 30 day late payment? That mis-step just cost you a whopping 60 to 110 points.
What I found most interesting about the damage points is how financial mis-steps are tougher on people with great credit scores. In a few years there will be less people with great credit scores and a lot more with only decent credit scores because the FICO credit rating system makes great credit scores tougher to keep.
I have been fielding more and more questions about credit and home loans lately. The questions are coming from both buyers and sellers. The two main questions are “Are buyers still able to get loans?” and “Are the lenders requiring higher credit scores?”. The answers to both these questions are “Yes”.
Lenders are still lending money and loans are still available. The documentation and verification process is more stringent than it was a couple of years ago. Credit scores have become more important too. A couple of years ago, a borrower could get a loan with a 580 or maybe a 560 credit score. That is not the situation today. If you need a loan in order to buy that house in Spring Texas you want, you are going to need a minimum of a 620 credit score.
We entrusted Jill Wente with the sale of our current home and purchase of a new home. From the beginning... read moreWe entrusted Jill Wente with the sale of our current home and purchase of a new home. From the beginning she was extremely up front and honest about exactly what we would need to do to get our house sold. We had an incredibly tight timeline, that she explained would be difficult to make - but she helped us make it happen and our house was under contract in 2 days! She had recommendations for all our home repair needs and they were all professional and fairly priced. She worked hard to really sell our offer for our new home - she was able to pull off the tight timeline, securing a rent back from our old house so we had time to move out, and a contingency for our new home. Definitely exceeded our expectations. She was so helpful along the way - as first time home sellers we really relied on her and we feel lucky to have worked with her! You will not regret working with Jill! read less