May 15, 2012 – 10:59 pm
Here are three facts about mortgage applications that at first glance are difficult to reconcile:
Fact 1: Mortgage rates are at historic lows.
Fact 2: Real Estate prices have fallen substantially over the past few years.
Fact 3: The number of mortgage applications over the past 2 months are DOWN.
So whats going on here? Well, according to the WSJ, part of the problem is persistent unemployment. Rates and prices can be low, but if you are looking for work, you wont be buying a home or refinancing a mortgage.
But there is a second problem that has persisted for several yearslow credit scores. According to Fair Isaac, the creator of the FICO credit score, more than 25 percent of consumers who have active credit files (about 43 million people) have FICO scores of 599 and below. Heres a chart from FICO Banking Analytics Blog showing the shift over time:

And for most mortgages, a score of 599 wont qualify you for a mortgage.
Now, weve already covered what credit score you need to get a mortgage.
Read more…
Posted in About Identity Theft | No Comments »