Credit scores are going to be making news. Without a lot of boring details, this is because of a new bill on Capitol Hill that will allow other scoring methods besides the dominant, industry-standard Fair Isaac Corporation (FICO). Depending on how excited the media gets about this, the public will likely start hearing things like, “New credit scoring methods will make it easier for low and middle-income people and those without traditional credit histories to now be considered for mortgage loans.”
The bill – known as the Credit Score Competition Act of 2015 – is well-received within the industry. National Association of Mortgage Professionals past President John Councilman says, “The need to rethink credit scoring is long overdue – the current system shuts out some creditworthy borrowers.” Sounds good, right? It basically is…but it’s still important for consumers to get educated by lending and real estate professionals about what their specific options and challenges are.
The internet has been good and evil for the home buying process. News like the potential for people to use things like their rent payment history and other things to build a credit profile will open the door to all kinds of offers and promotions by online entities just looking to make a quick buck than build clients for life. “Too good to be true” offers that waste peoples’ time could sour bona fide potential clients on the idea and process of buying a home. That’s just wrong!
If you’re a consumer wondering if the changes in the works could help you, we can connect you with responsible, experienced professionals that can give you the real scoop for your specific situation. To our mortgage and real estate partners, let’s work together to make sure this piece of good news doesn’t backfire for the people it’s intended to benefit.
It’s hard to explain title insurance. Frankly, if we were to fully explain what title insurance is and does, I’m pretty sure eyes would glaze over – if people even stuck around to hear the whole thing. Realtors and Loan Officers often say they have trouble answering questions for their buyers, sellers and refinance borrowers and consumers want to know why they’re required to buy title insurance and what it does. So here goes: Title insurance is like a warranty that insures you really own the property and no one or no other entity has rights or claims to it. Title policies are issued and work in more than one channel. Someone selling the property must provide title insurance to the buyer so they can pass “clear title” and the buyer must buy a policy to protect their lender’s investment (banks are funny about loaning money on property to one person if someone else owns part or all of it). Anything that can constitute a claim to a property outside of the seller transferring it or the new buyer is called a “cloud on title.” Title is sort of like the other insurance you may have – auto for example – and it really is one of those things that you will be SUPER glad you have if you find out that you need it. The best part of owning and working at a title company is this: We get to handle your closing and be there at one of the most important moments in your lives and be excited with and for you. Everyone at GCS will say that’s the best, most gratifying part of their job. We’ll also explain title insurance in detail if you’ve got a couple hours and nothing to do…