Vero Beach mortgages may be easier to get soon. A new calculation of credit scores will soon make it easier for millions of Americans to qualify for car loans and credit cards. The new methodology also could provide easier access to Vero Beach mortgages after tight post-recession lending standards shut millions of potential new homebuyers, particularly young Americans, out of the market.
The Fair Isaac Corp., which issues credit scores used in 90 percent of U.S. consumer lending decisions, says it will give less weight to unpaid medical bills when assessing creditworthiness, starting this fall. It also won't penalize a borrower's credit score if they've had bills settled with a collection agency.
FICO Changes for Vero Beach Mortgages Great for Consumers
Under FICO's current methodology, many potential borrowers either have been flat-out denied access to credit or forced to pay higher interest rates. Matt Fellowes, CEO of workforce optimization firm HelloWallet and a former Brookings Institution fellow, calls the changes "terrific improvements for consumers."
The revisions weren't necessarily a response to people's failures to pay medical bills, but rather intended to address punishment for bills they might not even know they had.
Over half of collections on credit reports are associated with medical bills, according to the Federal Reserve, and a May Consumer Financial Protection Bureau study found that some credit scoring models may overly penalize consumers because of medical debt. The score disadvantage – up to 25 points – could cost someone tens of thousands of dollars in interest over time on bigger loans like Vero Beach mortgages.
This move will ultimately make a real difference in the lives of millions of Americans, who have been shut out of the housing market or forced to pay higher rates for Vero Beach mortgages because of flawed credit scores.
The advice from most mortgage professionals to first-time home buyers is to begin sprucing up their credit at least six months before applying for any Vero Beach mortgages. FICO scores seen by lenders are not what are sold to consumers by the three national credit reporting agencies. The only way consumers will know for sure how their credit looks to lenders is by applying for pre-approval or filling out a mortgage application.
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Mortgage closing costs have risen 6% over the past year, according to a recent Bankrate.com report — averaging $2,539 on a $200,000 loan.
But mortgage closing costs aren't set in stone. Especially in today's market, you can definitely negotiate your origination and lender fees. It's like any other service. They have the power to give you a discount, if they want to. Don't just settle for whatever you're quoted for mortgage closing costs when buying a Vero Beach home.
Here are 5 Ways to Lower Your Mortgage Closing Costs
Get Multiple Quotes – Going with the first lender you call is like going with the first car insurance quote, or the first car you test drive — there might be a better deal or car out there. Get estimates from at least three lenders. You're looking for the total package for evaluation—interest rate plus closing costs. You'll generally be able to get those numbers by providing a few financial basics over the phone.
Compare Mortgage Closing Costs Carefully – This may be harder than it sounds, since lenders call similar fees by different names. They may lump certain things together that other lenders list separately, and include and exclude certain third-party costs, such as homeowners insurance. Your best bet is to ask for a GFE, or Good Faith Estimate, which lists each individual fee. It's the clearest way to see what each lender is charging you.
Ask About Fees – Make your lender walk through each charge with you and discuss what it includes. Some third party charges, such as appraisals and credit report fees, are pretty set in stone. Other costs, such as title insurance, legal fees, and rate lock fees vary more frequently than not. (Title insurance varies so much from state to state that some lenders don't even include it in their numbers. It's also something you can shop around for. You're not forced to take whatever quote you're given. Another charge to watch out for: Courier fees. In today's world of technology, unless the lender has been sending papers around for signature via delivery service, you can have this one nixed. Most use email and fax for signatures these days.
Watch For "Junk" Fees – Junk fees are fees a lender will charge that are negotiable, that they can take out or leave in. These might include things like application fees, underwriting fees, and loan processing fees, among others. If they seem vague, they probably are. Sometimes when you question the more ambiguous charges, they can be lowered or eliminated.
Ask for Discounts the Competitor is Offering – Go ahead, pit lenders against each other when getting quotes on your mortgage closing costs. If one lender is offering a deal, ask other lenders if they can match it. You may be surprised when a competitive market results in a smaller bottom line.
So there you have it. Our list of 5 Ways to Lower Mortgage Closing Costs when buying a Vero Beach home.
Stay abreast of all the tips and tricks affecting your ability to obtain a mortgage and lower your mortgage closing costs here at our website. More articles regarding Vero Beach mortgages can be found by clicking on the Vero Beach Mortgage Info link to your right under Vero Beach Real Estate Categories.
The growth of Vero Beach home prices, both the quarter-over-quarter and year-over-year, are lower than they were 12 months ago, but wages are not keeping up. This word according to data released from Trulia for July 2014.
The month-over-month increase in asking Vero Beach home prices of 0.8% was in line with the average monthly gain over the past year, settling back down after a 1.2% month-over-month gain in June. The quarter-over-quarter increase of 2.5% remains below the level of last spring's price spurt, when the quarter-over-quarter increase was 3% or higher in March through June 2013.
Vero Beach Home Prices Continue Widespread Increases
Although Vero Beach home prices aren't rising as fast as they did in spring 2013, price increases continue to be widespread with overall year-over-year price gains, and quarter-over-quarter gains.
Nationwide, for the first time in more than two years, none of the 100 largest U.S. metros had a year-over-year price increase above 15%. The stagnation of wages and household income, though, shows that as Trulia states, incomes aren't keeping pace with even slowing price gains.
Why are home prices in some areas rising faster than others, and why are some actually falling? Because the housing market is still recovering from the bust, and local markets where prices had fallen most are now seeing larger price gains. That's the "rebound effect," which was fueled by investors and other home buyers scooping up relative bargains. Once those bargains are gone, there's no more room to rebound.
We're already seeing gains in Vero Beach home prices slow dramatically or even reverse slightly in some isolated locations.
Stay abreast of all the news affecting Vero Beach home prices right here at our website. More articles regarding Vero Beach housing can be found in the Vero Beach Real Estate section, or the Vero Beach Real Estate News section, both to your right under Vero Beach Real Estate Categories.
The Vero Beach housing report for June from Case-Shiller and FHFA are out and show that both existing home sales and new home sales were down, even though prices were up. Inventory is also on the rise and that should continue to dampen price pressures for people looking to buy a home.
Rick Sharga, EVP at Auction.com talks about the latest housing numbers and what it means going forward…
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