I had bought my current home with the help of home loans and I am very happy that I made the decision of availing a home loan. Now I am willing to invest on another property and wish to apply for a home loan this time as well. But everything is not as it was ten years ago. Recently, there have been modifications made to the model of calculating the score on consumer credit that influences the mortgages. It has been learnt that these modifications will have a huge impact on the borrower’s qualifying factors for home loans and the interest rate on mortgages. Refinancing of mortgages will also be affected. The modification issues that have brought about this difference are described here for better understanding of the new home loan policies.
The ratio of balance on credit to the limit on the loan has been a major factor influencing the qualifying factors for mortgage and insurance rates. You will have a better credit score when your available credit limit is higher than your credit balance. This modification will affect borrowers of home loans when the issuers of credit cards will reduce the maximum limit of available credit to the card holders. If your credit balance to credit limit ratio is less than or equal to 3%, then you will be benefited by this modification.
Ten years ago, I had to close three bank accounts as having many accounts was viewed as a negative factor in credit scores. But now, the modification in the credit calculation rule views the presence of many active accounts as a positive factor in calculating credit scores. But please note that these accounts must not be new or delinquent. However, having collection accounts with a minimum of $100 is now overlooked. If you are a borrower with debts from unpaid library fees, petty medical and parking bills, or such other small disagreements, then you are in for a benefit. Such issues are no longer a hindrance to credit scores.
Also, if you having the least negative issues in your credit report is an added advantage. In the new scoring model, isolated problems in credit history has a lesser impact on credit scores. The previous scoring pattern allowed credit card users to build a positive profile on credit even if they were not the main card holder. But the modification has now banned the non primary card holders with the ability to put together a decent credit history.
For additional resources and information please visit the following sites.
Resource Links:
Bill Fields All Star Coaching Program: http://www.AllStarCoaching.net
GreatWest GMAC Search all MLS Listings: http://www.LocalHomeLink.com
GreatWest GMAC Consumer Buyer/Seller Blog: http://www.GreatWestBlog.com
T. Sami Siddiqui (Broker/ Owner) Buzz About Sacramento Blog: http://www.samisiddiquiblog.com
Brodie Stephens (Executive Vice President) One Stop Blog: http://www.brodiestephensblog.com
GreatWest Podcasts- Weekly Updates on new REO, Short Sale, Bank Owned Foreclosure Listings: http://www.HouseTalkOnline.com
GreatWest Videos: http://www.youtube.com/brodiestephens
Facebook Brodie Stephens Profile Page: http://www.facebook.com/brodiestephens
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MySpace Brodie Stephens Blog: http://www.myspace.com/brodiestephens
MySpace GreatWest Blog: http://www.myspace.com/greatwest
Picasa Web Album: http://picasaweb.google.com/brodiestephens
GreatWest Real Estate Careers- GMAC is looking for Professional Realtors to Join Us: http://www.CareersWithUs.com
Global Employee Relocation: http://www.employeerelocation.blogspot.com
Apply for a Loan: http://www.choice1funding.com
ActiveRain Blog Brodie: http://activerain.com/blogs/brodiestephens
ActiveRain Blog Company:http://activerain.com/blogs/greatwestgmac
Sacbee:http://www.sacbee.com
Company WordPress Site:http://www.thehomeholders.com
Real Living:http://www.realliving.com
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