FICO Rescoring
One of the most common issues that can adversely affect buyers’ ability to purchase, resulting in higher interest rates, costs, and monthly payments for their loans, are low FICO scores. They are categorized in 20 point brackets. For example, from 620 to 639, 680 to 699, 720 to 739, 760 to 779, etc.; with the mid-score used for loan qualification and instrumental in determining a loan’s interest rate, cost, and monthly payment.
The higher the bracket this score is in, the lower the interest rate, loan cost, and monthly payment. Conversely, the lower the bracket this score is in, the higher the interest rate, loan cost, and monthly payment. Even if a low score is high enough to qualify a buyer for certain loan programs, depending upon a home’s loan amount, the total of the monthly payment, property taxes, and homeowners insurance plus all other monthly debt shown on the credit report, may be too high for loan qualification, so a purchase cannot occur.
I have been FICO rescoring my clients credit reports since I began doing loans in 2005 at no cost to them for my services, have done dozens of rescores over the years saving my clients in excess of $75,000, while reducing their loans’ interest rates and loan costs substantially. In addition, these lower interest rates translated into much lower monthly payments for my clients, making it easier for loan qualification, and for many was the only reason they were able to qualify.
The letter at this link is from a client for whom I recently rescored his credit report from a mid-FICO of 627 to 761 in just 1 day after successfully getting 2 charge-offs removed from it. This made the difference between him being able to purchase a home or not, while saving him, believe it or not; $16,700 on his loan transactions! To say the least, he was quite pleased and amazed.
If your FICO score has prevented you from being able to get a mortgage loan, or limited the loan programs you can qualify for, or has caused your loan’s interest rate, monthly payment, and loan costs, to be higher than you like, or has affected your ability to buy anything on credit at a decent interest rate, FICO rescoring could be the solution to all of these issues. Please reach out to me so I can tell you what can be done.