In recent months, borrowers have begun to pay back debt on mortgage loans at a greater rate. However, despite this good behavior, many financial institutions will only lend to consumers with excellent credit.
In its recently released U.S. Housing and Mortgage Trends report, CoreLogic found 60 percent of all mortgage loans originated in 2010 were made to consumers with a credit score of at least 780.
This means only consumers who have scores on the high end of the FICO scale – which runs from 300 to 850 – may be able to secure the financing they need to purchase a home. As a result, many consumers may be on the cusp of achieving a loan but may be unable to get one because of their current credit level.
However, this can often be fixed if they pursue plans that can help them repair credit. In order to push themselves over this bar, consumers can order a copy of their latest credit report. By scanning this document for errors or fraudulent activity, individuals can see if their score is suffering due to a questionable charge.
In addition, contacting a credit repair professional and investigating these claims could help them repair credit faster and more efficiently.