A recently released special mortgage credit scoring system could give the Sonora California real estate market a boost. By factoring in good financial habits, the new FICO score rewards USA and Sonora home buyers, those searching for homes in Twain Harte and throughout real estate Tuolumne County and the nation.
FICO, a consumer credit score company, partnered with CoreLogic, a data firm, to produce the new tool. Formally called the FICO Mortgage Score Powered by CoreLogic, the CoreScore Credit Report or simply CoreScore titles will be more commonly used. Designed specifically for mortgage lenders, the tool is expected to assist first-time homebuyers along with those with low/moderate incomes. It may also assist potential buyers in the Twain Harte/Sonora real estate market.
According to FoxBusiness.com on July 13, 2012, the CoreScore essentially “casts a wider net to capture consumer behavior not previously considered in whether to grant a home loan.”Lenders are expected to utilize the CoreScore Credit Report at the prequalifying stage of the home loan application.
By shining light on additional data, the detailed new formula rewards people for fiscal responsibility. For example, renters get points for timely rent payments and parents for timely child-support payments.In contract to traditional FICO scores, credit union transactions are factored in. Likewise, late payments will show up.
Proponents of the CoreScore assert the program allows consumers with little experience who would normally be turned down for home loans to have a chance at buying homes. Experience with traditional loans includes credit cards and car loans. Nontraditional data includes repaying payday loans and short-term installment loans.
Privacy is a concern for many as it is with computer banks that gather personal information. FICO and CoreLogic will have their hands full sifting through information. Fortunately, much of the data comes from public sources and to ensure accuracy, it is double-keyed. CoreLogic also encourages consumers to review their own reports for inaccuracies.
The CoreLogic press release quoted the senior vice president of product management explains that a lender processing 300,000 applications annually could approve an additional 3900 loans by using the new tool. Over 70 percent of 300,000 mortgage applicants tested scored higher with the FICO mortgage score powered by CoreLogic than they did with other credit scores.
Buying and Selling Properties
Call Century 21 Wildwood Properties, Inc. at 209-586-3258 or visit us at www.Century21Wildwood.com for helpful information about buying Northern California land and homes, horse properties and investment properties in Tuolumne County. Our qualified agents also provide resources and marketing skills to assist sellers to find the right buyers.