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How to Get a Better Deal on Your Next Mortgage
By now, you’ve probably seen the news about Fannie Mae and Freddie Mac’s (the Government Sponsored Entities or GSEs) changes to their Loan Level Pricing Adjustment (LLPA) tables. The new fees will become effective for all loans purchased by the Agencies on or after May 1, 2023.
While not a part of the mortgage process most borrowers know, or care to know about, Loan Level Price Adjustments very directly impact the rates and fees you pay on your mortgage loan, both at time of closing and over the life of the loan.
The GSEs’ are the nation’s largest mortgage investors. They buy the bulk of the mortgage loans written in the country, ensuring that there is always enough money for homeowners who want to buy a new home. Their LLPA tables are one of the ways Fannie Mae and Freddie Mac manage Loan Level Risk.
One of the key pieces of information they use to determine the risk is your credit score. Learn about the difference between your mortgage credit score and consumer credit score here.
How to become a stronger borrower by improving your credit score
This new table expands the number of consumers that could be impacted by LLPA adjustments. In the past, the GSEs didn’t include an LLPA for loans made to borrowers with scores above the 740 credit score band. After May 1, they will.
But those fees will still be smaller than the GSEs will charge for loans made to borrowers with lower credit scores. If you want a better deal, you must raise your credit score. The good news is that most people can do this within 30 days by taking a few smart steps. We’re not talking about credit repair here. CreditXpert is not in that business.
We’re talking about making smart moves that will naturally increase your score, and get you a better deal on your next mortgage, even if your next mortgage is in already in process. We do that by shedding some light on how your credit scores are calculated.
A simple report, provided by your lender, gives you the steps to take based on our experience analyzing millions of credit reports. Ask your lender today about CreditXpert and how we can help you get a better deal on your next home loan.
To find out now what your potential for a higher score actually is, visit our online consumer credit calculator to see for yourself.
Related Credit Insights
Originally featured in Scotsman Guide, Hidden in Plain Sight. Nudging a credit score upward, could be the difference between owning a home or not. Every applicant is more important than ever. The truth is that 71% of mortgage applicants with scores below 760 could better their score by at least one 20-point credit band within 30 days, allowing many to qualify for a mortgage. That’s what CreditXpert discovered when examining 24 mil- lion mid-score credit inquiries. It’s surprising how many prospective mortgage borrowers are hiding in plain sight, shielded by a credit score that is far below its potential.
Are you one of the 50% of mortgage borrowers who apply with multiple lenders in pursuit of the best rate and terms? If so, you're not alone. We recently surveyed borrowers and found that half believe applying with several lenders is the key to securing the most favorable mortgage deal.