In the last 6 months, there have been dramatic changes in the mortgage industry. One of the most visible is what's been referred to as a "flight to quality". Not only are we seeing the disappearance of loan products to serve those with blemished credit, Fannie Mae is now penalizing virtually all borrowers with less than excellent scores. Borrowers with a 719 FICO score with less than 40% equity (or putting 40% down), are automatically hit with a .5% penalty. On a $350,000 loan, that's $1,750! The penalty gets higher as the credit score goes lower. The penalty increases to $4,375 for the same loan if the credit score falls to 679. 
 
A credit score over 680 used to be considered an good score - one that gave a borrower access to the best rates. Now, unless you have a score over 720 or are putting more than 40% down, you are going to feel this "flight to quality" in your pocketbook.
 
Now, more than ever, it's imperative for you to take control of the information in your credit report and take the steps necessary to improve your credit score or maintain the score you have.  If you have any questions about credit repair or credit score improvement, please do not hesitate to send an email to chris@caacredit.com or visit http://www.caacredit.com.

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