Category Archives: Quick Real Estate News

What Everyone Should Know About Credit Scores

For starters there are different classifications for what is considered a good credit score. They can also be described as poor, average, good, great, excellent, or even exceptional based on the credit score number that you have. Your credit score will fall within one of these categories, but keep in mind the names for these categories differ from industry to industry but to give you a general idea of how good, or bad your credit score is, we have provided you this article outlining what most lenders or banks, even credit card companies and car dealerships, use to determine the likeliness of providing you with a loan at a reasonable rate. Below there is a pie chart outlining what FICO classifies credit score ratings nationwide.

fico-score-graphic

A good credit score depends on many factors. A credit score when applying for a mortgage is different when applying for a credit card or a car loan at your local dealership.
Based on our experience most credit scores, or what seems to be the average among individuals, fall within 620 to 669. A score between 670 to 680 would be considered above average or generally good credit for most lenders. Anything between 680 and 720 will be measured as excellent or very good credit and will help you attain that interest rate that everyone wants. Now, generally anything above 750 will be seen as exceptional credit, which is what lenders like to see. The higher your score, the better credit decisions lenders will make because they will be more confident that you will repay any future debts.

Credit scores are used by lenders, including banks providing mortgage loans, credit card companies, and even car dealerships to make decisions about whether or not to offer you a reasonable loan and what the terms of the offer (such as the interest rate or down payment) will be. We have broken down the differences among these types of loans below.

Home Loans
Mortgages have two key credit score requirements. The first is the minimum score needed to qualify for the mortgage and the second is also a minimum score but this is for qualifying for a low interest rate. Keep in mind that when buying a home there are many types of loans that one can attain. There are conventional loans, FHA Loans, and VA Loans, all with different minimum credit score requirements.

Credit Cards
Credit card lenders do not reveal their requirements unlike mortgages, credit card issuers don’t disclose their standards. There is no data readily available to the public in regards to credit cards.

Car Loans
Also with car loans, there are no set standards, and credit score requirements vary from one lender to the next. Just like the rest of the type of loans (mortgages and credit cards) it is best to keep your credit score in the above average section of credit score rating. To get the best possible interest rate available as well as the type of loan you can be approved for.

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The digital mortgage makes its way to local, smaller lenders

The digital mortgage makes its way to local, smaller lenders

The idea of a fully digital mortgage sent shockwaves through the industry nearly a year ago. However, now that lenders have had a year to digest their first priority, TRID, more lenders are ready to look at the possibility of offering a fully digital mortgage. And even if they are not ready, borrowers, no matter their age, are demanding it.

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FBR: Mortgage lending set for best quarter since 2007

Less than one month ago, the analysts of FBR & Co. predicted that 2016 could prove to the best year for mortgage lending since 2013, but a new report from those same analysts suggests that 2016 could be even stronger than they originally predicted. Driving FBR’s increased projection is a strong 3rd quarter, which could prove to be the best for mortgage lending since the 4th quarter of 2007.

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How to defend against disruptive Airbnb neighbors

How to defend against disruptive Airbnb neighbors

For those that are concerned about a neighbor who is using Airbnb, there is legal action you can take. HousingWire’s interview with the chief legal officer from Avvo shows homeowners steps they can take in order to fight back against these sometimes unwelcome neighbors.

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Zillow: We use the best fraud prevention system available

After some real estate agents complained about receiving phishing emails instead of leads from Zillow, the company responded by saying not only does it do everything it can to prevent these scam emails from going through, but it has one of the best filters in the industry. Zillow argues that scammers are only an occasional occurrence.

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Mrs. Doubtfire home hits the market at $4.45 million

Mrs. Doubtfire home hits the market at $4.45 million

Just under a decade ago, the owner bought the home featured in the film Mrs. Doubtfire for less than half its current listing price. Here’s more on this expensive four-bedroom home.

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Fitch: Banks cut back on mortgage servicing staff by 50%

As borrowers become better at making their mortgage payments, banks need fewer mortgage servicers. Over the past two years, banks cut mortgage servicer employees by 50%. However, the same cannot be said of nonbanks.

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Playboy Mansion sold for $100 million

Playboy Mansion sold for $100 million

Playboy Mansion sold for $100 million, about half the asking price but more than any other L.A. home in history.
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Bank of America earnings boosted by increase in mortgage banking

Bank of America earnings increased from last year and last quarter. The bank’s decreased expenses can be credited in part by the reduced costs of mortgage servicing. Several reports also put the primary earnings surge down to rising income from fixed securities trading, primarily in the bond market.

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