How will they affect your ability to qualify for a home loan?
When it comes to credit scores and mortgages, higher scores are better. But could your credit score be going down soon? Here’s some information to help ease your credit score for home loan concerns.
In January, Fair Isaac Corp., the company behind the FICO credit score, announced that its latest model will start incorporating consumers’ debt levels into their scores. According to CNBC, FICO estimates that:
- About 110 million consumers will see a change to their score under the new model.
- Roughly 40 million will see a shift upward over 20 points.
- Another 40 million will see a shift downward over 20 points.
This informative article by U.S. News & World Report has all the details. It also says not to panic, as credit scores may not be affected by the new FICO formula until mid- to late 2020.
Still, if your plans for 2020 include buying a new home or refinancing your current loan, let’s discuss how these changes in credit scores could affect your timetable. We’re here to answer your questions!