• Home
    • Buying
    • Changes to credit scoring system and home buying

    Changes to credit scoring system and home buying

    In the Real Estate world almost every homebuyer has to have one key thing in order to buy a home in Orange County and that thing is credit. Sadly though, achieving a credit score that’s ideal to lenders can seem illusive thanks to recent changes in the world like the economic recession, job losses and more.

    The Complicated World Of Credit  

    Credit can be a complicated process since just about every consumer wants a credit score that’s reported fairly, while lenders are eager to make sure that a consumers credit score is the right indicator that means they will be able to pay their monthly mortgage payment on time and not end up underwater.

    Do You Think You Don’t Need Credit?

    In spite of the importance of credit, when it comes to buying a home in Orange County, there are still a large percentage of consumers who don’t think that having good credit is important.

    According to a recent report by Realtor.com, some of the most common questions that consumers have about credit include the following:

    • Why shouldn’t I pay off my collection accounts? Doesn’t that help my credit score?
    • I don’t need to use credit right now so why should I care about having it?
    • Why don’t most creditors take into account consumers good credit score before the economic recession and give those people a break if their jobs or economic lively hoods were affected?

    These questions point to the fact that a small percentage of consumers need to be better educated about the importance of their credit history or missing out on the benefits that come with having credit because, they didn’t use it wisely when they were younger.

    Changes In The Credit Industry

    Thanks to major changes in the economic world recently like a worldwide, global recession that affected millions of consumers across the United States, some credit reporting agencies are now changing their criteria for evaluating a consumers credit including not handing over a “death sentence” to consumers who might have had one or more collection accounts.

    To learn more about the importance of credit and how it affects you or to view the latest Orange County homes for sale, contact Fred Sed & Associates today by calling (949) 272-0125.

    Trackback from your site.

    Leave a Reply