One error on a client's credit report can be the difference between being approved or denied a loan.
Knoxville, TN (PRWEB) December 20, 2012
The Holloway Group, the leading Knoxville real estate team at Gables & Gates, REALTORS recently posted an article on their website urging clients to obtain and review a copy of their credit report. Troy Stavros, Broker and Partner with the Holloway Group stated, "In today's home buying process, with the current stringent lending guidelines, a client's credit score plays a pivotal role in whether or not they will be approved for a loan. One error on a client's credit report can be the difference between being approved or denied a loan. That is why it is so important that each person obtain and review a copy of their report each year, giving them to ability to find and correct errors effecting their credit score."
The Consumer Financial Protection Bureau (CFPB) released a report revealing only one in five people actually obtain a copy of their credit report each year. The report also stated, in 2011, consumers reached out to credit reporting companies about 8 million times to challenge information on their report. Overall, the actions led to 32 to 38 million disputed items.
Stavros said, "The instances of being able to get a mortgage with less than stellar credit are behind us." A recent report by Ellie Mae, which represents 20 percent of all U.S. mortgage originations, found the average FICO score for a closed loan in October was 750, while the average denied loan had a score of 706. Once approved, the effect your score has on your loan doesn't stop. A loan savings calculator provided by myFICO, the consumer division of FICO, shows how credit scores can effect the interest rate one would receive on a mortgage. As of December 14, 2012, a person with an average FICO score of 760-850 would receive a 2.975% rate on a 30-year fixed rate mortgage. However, if one had a score of 620-639, the rate would be 4.564%.
According to Stavros, "Just because you aren't planning on purchasing any Knoxville real estate this year doesn't mean you shouldn't be reviewing your credit report. Oftentimes it could take months to get an error off your report. With your credit score being one of the most important tools in getting a loan approval, it's best to always keep it sharp. For current homeowners it also is a major part of refinancing. Not a homeowner? More and more employers are looking at a prospective employees credit report before hiring. Yearly review is just good practice all around."
The Holloway Group is committed to bringing the best possible experience to fruition for buyers and sellers of Knoxville real estate. At the Holloway Group we don't believe average is good enough for our clients. At the forefront of the Holloway Group is experience. Our team was created to serve our clients even better with specialization and expertise. We know that individually we cannot be everything to everyone so we have come together as a group, bringing all of our different strengths, so you always work with the best. We pride ourselves on being ahead of the curve on technology and how it can serve our clients. When you are a client of the Holloway Group, you can expect to have our entire team of professionals working to fulfill your individual real estate goal. As a member of Leading Real Estate Companies of the World the Holloway Group and Gables & Gates, REALTORS can assist you with finding the most qualified real estate professional to suit your needs, anywhere in the world! Contact us today for assistance.