2014 Brings Higher Rates And A Need For The Best Credit Scores

As 2014 unfolds we are seeing higher rates and pricing on financing. We are also seeing a resurgence of subprime lending. So although it seems most loan applicants will be approved for financing, many may be paying much more due to higher rates and points. If an applicant's scores are under a FICO score of 740 pricing could be substantially higher. When costs increase something has to give, and this may very likely be a reduction in the loan amount.  Since it is a sellers' market these days and inventory is down buyers must arrange to get the best pricing and interest rates to afford the loan amount needed for purchasing a property.  Sellers want to know that they are dealing with a viable buyer before taking their home off the market.  Preparing credit, income, and debt ratios well in advance could make the difference for purchasing a bigger/higher priced home and living in a more desired area with a preferred school district. 

Realtors, bankers, CPAs, and financial planners should educate their potential and current clients about these changes and how to put their best foot forward when getting ready for a real estate purchase.   Buyers must lay the ground work well in advance by building the best credit scores and correcting any errors, delinquencies, or balance discrepancies reported that are interfering with their credit score goals.  Understanding the rules and having the right professional take control of the credit repair/education process equals happier buyers and more closings. 

With the CFPB cracking down on credit bureaus, creditors, and banks, many dispute-factory type credit repair companies are finding less and less success for their clients. These credit repair companies are churning out factory-type letters to dispute credit, and in turn the bureaus have become much more sophisticated and smarter to combat it.  Since we use a sophisticated and unique individual credit repair strategy for every credit profile and account our success ratio continues to be excellent unlike the other credit repair companies.   

Besides changes in rates and pricing, many bankers are experiencing road blocks to loan approval when the bank finds open "consumer dispute statements" listed on credit accounts.  Banks do not like "consumer dispute statements" on credit since it means the account in question is taken out of the FICO formula, leaving the bank with a false score and therefore no real sense of the loan's risk. This is why banks want these statements removed or resolved before loan approval is compete. There are a few reasons why these dispute statements remain on credit.  First, if an unsophisticated credit repair company was hired to dispute information on credit with the bureaus they usually have limited success and whatever accounts remain on credit may still reflect an open dispute status. These companies don't always take the time to remove the open dispute statements. Another common reason is that some consumers try to fix their own credit and due to limited knowledge are usually unsuccessful and the consumer dispute statement is never removed.

Feel free to reach out to us at 877-292=0656 if you have any credit questions or reports you would like reviewed!  

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