Homebuyers need to steer clear of FICO-score potholes

Homebuyers need to steer clear of FICO-score potholes

Experts in the credit-reporting field say that despite FICO’s good intentions, bad things can happen on inquiries — requests by lenders and others to pull your national credit-bureau reports.

In a marketplace where lenders are demanding record-high FICO credit scores — Fannie Mae and Freddie Mac are averaging around 760 on approved mortgages this year — are you a little fuzzy about what can push your scores up or down?

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Are you thinking of buying a home? Now is a great time with this market and interest rates so low! Check out our Homeownership Simplified section a for information & tips on buying a house in Washington State as well as our handy calculators to figure out potential mortgages, closing costs, and more!

Loan rejections soon to come with explanation

Loan rejections soon to come with explanation

If you’re not feeling a lender’s love, you’ll soon know exactly why you got jilted.

As of July, if a lender denies you a credit card, a car loan or other loan product based on your credit score, you’re entitled to a free copy of that score.

You’ll also get a list of the reasons why you got rejected. Ditto if you get a less-than-favorable interest rate on a new loan.

Some credit experts call the new rules a historic change in how consumers are treated by lenders.

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Stopping the Debt Cycle

Getting a handle on your debt is a good idea for all homeowners, and especially for those looking to buy a home. Check out this helpful article Stopping the Debt Cycle from Realty Times on some tips to get started.

“…A recent study by the National Bureau of Economic Research found that 51 percent of Americans would be unable to come up with $2,000 cash in case of an emergency. Yet, the average American household carries thousands of dollars of debt…”

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Debt matters when it comes time to get a mortgage

Debt matters when it comes time to get a mortgage

“Paying your bills on time, having stable income and boasting a good credit score won’t get you a mortgage loan if your lender determines you live too close to the edge…

Knowing your debt ratio is just as important as knowing your credit score when you get ready to apply for a home loan…”

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Need help securing a loan?

Check out our listings of Financial Assistance Programs for Washington residents.

Medical debt hurting loan applicants

Medical debt hurting loan applicants

Are medical-bill collection accounts buried away inside millions of consumers’ credit files — even bills that were fully paid or settled years ago — functioning as a drag on the housing market?

That might sound far-fetched, yet some credit and mortgage-industry experts say negative medical-collection records are playing a little-recognized but significant role in depressing otherwise creditworthy loan applicants’ scores.

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