Home shoppers no longer need to tremble all the way to the lenders’ office or have nightmares over being denied a home loan – all the troubles that have been prominently spotlighted by many news reports in recent years. A new report confirms: It’s getting easier to get a mortgage – and as a bonus, borrowing costs are still low.
Over the past year and a half, the federal government and enterprises have taken several steps to open up the credit box, and the efforts may finally be showing signs of paying off.
Credit scores on closed loans in September dropped to the lowest level since Ellie Mae began collecting the data in August 2011, according to Ellie Mae’s latest Origination Insight Report. The average FICO score for closed loans has fallen throughout the year – from 731 in January to 723 in September.
Source: “Is the Credit Box Finally Showing Signs of Opening Up?” HousingWire (Oct. 21, 2015) andFreddie Mac