Mortgage Financing and Paying Credit Bills
Fort Lauderdale Real Estate
Mortgage Lender Scrutinizes How You Pay Your Monthly Credit Bills
How do you manage your credit bills from month to month? Are you a “transactor” who consistently makes more than the minimum payment, or are you a “revolver” making only the minimum payments every month? Very soon, the answer to that question will affect whether you get a mortgage and whether you qualify for reduced interest rates.
Starting on June 25th, Fannie Mae, one of the leading sources of mortgage financing, will use additional credit report information to determine your credit risk for mortgage lending. Credit reporting agencies are ready to begin providing this additional “reach back data” to Fannie Mae. This will include two years of continuous month-by-month detail on how you manage your credit. Your FICO credit score, however, will not be affected.
Lower risk transactors are seen as more creditworthy and are likely to receive reduced interest rates. Revolvers are considered a higher risk and may even be denied a mortgage. So, if you are planning on buying property and getting a mortgage, make sure you consistently pay off the entire balance of your monthly credit bills or pay more than the minimum payment. This will help place you in a lower risk category and could even help you get better mortgage rates.
To buy or sell real estate anywhere in Broward County,
please call Dale Palmer Group at 954-895-8999 or contact-us today.
For real estate for sale in our market, see some of our more popular pages.
Fort Lauderdale Real Estate
Fort Lauderdale Waterfront Homes
Fort Lauderdale Condos
Fort Lauderdale Homes