First, I’d like to invite you to join us at our 10 Day Fast Start Money Management Program. It will help you get your financial house in order using a jump start that works!
Next, about eight weeks ago, the way FICO scores are calculated was changed without notice or warning. Every score went down, even though there were no negative occurrences. There is nothing we can do about this as it was systemic.
If you are feeling bad about it, there is no reason to feel bad. I wanted you to know because your goals are dependent on your scores.
Lastly, about three weeks ago, the big banks started tightening their belts. This means that where you could once get a mortgage with a 650 score and 5% down, that is no longer the case in many places. Please be aware of this.
For those who want to refinance an existing mortgage, it may also be more difficult. Again, this is a systemic change. The banks are reacting to the large number of unemployed people and the inherent risk.
I cannot speak for your lenders, but I can say we must continue to put you in the best possible financial position so that you can meet your goals. It just sickens me to see what has happened and how many good people will be affected.
I know I’m taking more than a minute, but I want you to have hope and know that your efforts will put you ahead of the pack by improving your habits and your FICO scores.
The all-important things are, in this order:
- Stay healthy
- Pay your bills on time
- If the virus is preventing item 2, contact your creditors for arrangements IMMEDIATELY. Don’t let anything go to collection as that is such a score buster.
- If your current mortgage lender has offered forbearance, be sure you have READ and understand the terms. I have seen agreements where they want all the payments on the first day of the fourth month. That could create issues.
Remember, I am available M-F 9 am to 6 pm. Email questions anytime and I’ll get you an answer.