I was saying back three years ago that I though mortgage loan rates should be set by relating to credit score. If you have a 720, then great you get the best rate available in the market with very little need to verify things. If you have a lower credit score, then an increased rate, with those under 600 getting the highest rates in the market.
Fannie Mae also announced yesterday to all lenders that they really only want credits over 580 and want more time since foreclosure, increased by a year.
Again, the key is predictability. If we meet a customer who has been out of foreclosure for 9 months and has a 550 credit. Then we can advise them to wait at least 3 more months, and work with credit repair and improvement consultant to get above 580 at a minimum. There is no reason for this customer to be out making offers on homes, thus hindering a sellers marketing by tying up a house for 30 or 60 days.
Will loan officers and lenders be willing to be this honest, and use stronger consulting skills? At First Financial Trust Mortgage, this is exactly what we will do. Call today 219-762-7200 and ask for President James Snyder.