Credit scores heavily influence the process for the mortgage application. A higher credit score can help you lock in lower interest rates and provide lower monthly mortgage payments, which can potentially save you tens of thousands of dollars over the life of a 30-year fixed rate mortgage. A good credit score represents your dependability as a borrower. They are utilized by mortgage lenders to calculate the riskiness of lending to a borrower. While low credit scores can jeopardize your qualification for a loan or lead to higher interest rates, high credit scores equate to lower risks for defaults on loans and lower interest rates. As a result, the borrower can get more house (higher purchase price), or a lower monthly payment on a lower priced home. Because of credit scores’ influence on the interest rates set for borrowers, it’s valuable to look into improving it as much as possible before your mortgage application. You don’t want a low credit score to jeopardize your ability to take advantage of the current low interest rates in 2020. It's also important to know that the credit system isn’t perfect and may not reflect perfectly your willingness or ability to repay a debt.Read More
Bridging the Gap: Democratization in Home Purchasing Through Innovation in Mortgage Technology
America is increasingly becoming a more diverse country. The majority of the population will soon comprise a lionshare of minorities. However, despite their significant presence, many sectors of the minority population are grossly underserved when it comes to financial services, including the home mortgage industry. Even in this day and age, those who are Black and Latinx are less likely to own homes than Whites. While Whites are able to attain mortgages at a rate of 71.9%, Blacks and Latinx are only able to attain mortgages rates almost half that of Whites; 41.3% and 47% respectively. This is because the first two groups have a much harder time getting the conventional mortgages which Whites and Asians have less trouble obtaining. Even after they are approved for conventional loans, Latinx and Black people, on average, pay higher interest rates, and mortgages than Whites and Asians.Read More
It is no secret that the COVID19 pandemic has turned the world as we know it, completely upside down. We now spend a majority of our time working from home, and many in-person interactions that occurred in the workplace, now all occur via Zoom or similar digital engagement. Our lives have become more socially distant, in almost every regard. One silver lining of this pandemic, however, is that it has inadvertently led to increased innovation in the field of mortgage technology. Technological advancements have solved some of the most difficult challenges that Coronavirus has created in the mortgage industry. This is good not only for lenders and lending teams to stay productive, but also borrowers, to keep their re-financing options open and home purchase possible when it's not possible to go to your local lending branch or meet your loan officer for a coffee.