The single most important item in today’s lending landscape is CREDIT. As a homebuyer, you cannot make it to the closing table without a good credit score. Many clients and future clients are shocked about why their credit score is so low or has changed so dramatically from one event. As recently published by myFICO.com, here’s a few common financial difficulties and how they affect FICO scores.
SCENARIO #1- Max-Out A Credit Card
- Starting credit score of 780 : 25-45 point drop
- Starting credit score of 680 : 10-30 point drop
SCENARIO #2 – 30-Day Delinquency
- Starting credit score of 780 : 90-110 point drop
- Starting credit score of 680 : 60-80 point drop
SCENARIO #3- Foreclosure
- Starting credit score of 780 : 140-160 point drop
- Starting credit score of 680 : 85-105 point drop
Thank you to Geoff Brown at New American Mortgage for keeping me informed. If you are thinking about buying or selling real estate in the Lake Norman area, contact me, I can help!