Average Homebuyer Credit Score Drops
A recent report from Ellie Mae, a mortgage software company who processed over 3.7million loan applications in 2014, showed that the average credit score for home buyer has decreased. For the month of September the average FICO score for mortgage borrowers was 723. In comparison, in September of 2014 the average FICO score was 732. This marked the lowest average credit score seen by Ellie Mae since they started tracking the data in August of 2011. A FICO score that falls between 700-749 is considered to be a good credit score.
What does this mean for homebuyers in the Twin Cities? This means that mortgage lenders are beginning to loosen their underwriting standards. You do not need to have an excellent credit score to buy a home in the Twin Cities. However, having a good credit score does improve your chances of a mortgage lender approving your application. When obtaining a mortgage loan you want the lowest possible interest rate as possible. To accomplish this you want your credit score to be as high as possible.
Now is the perfect time to buy or sell a home in the Twin Cities If you are looking to buy or sell a home this spring contact me. Our group specializes inEden Prairie Real Estate,Chanhassen Real Estate,Chaska Real Estate,Lake Minnetonka Real Estate,Edina Real Estateand West Bloomington Real Estate.
Brace Helgeson Coldwell Banker Burnet
Licensed in Minnesota/Lic # 92065