Bozeman Montana Real Estate Information Archive


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New FICO Credit System Changing

by Tim Hart

The credit scoring system may be changing for the better, at least for consumers with a shakier credit history. FICO has introduced their new credit system that is aiming to be more loan friendly towards clients with past, but paid-off debts as well as those with medical debt. The new FICO scoring system will take settled bills into consideration when adjusting someone’s credit score. If someone had owed money in their past, with the old system, their credit could be retroactively affected for seven years. Now, old, but paid off bills should not affect their credit score as much as before.

The new FICO system will also remove the negative effects of having unpaid medical bills. Currently, 64.3 milion Americans’ credit scores are affected by these unpaid medical bills. By removing the negative impact of medical debt, some Americans may see their credit scores raise by 25 points. Considering that FICO scores are used to determine loan decisions around 90 percent of the time, many more people may find themselves eligible loan. Even more people will see their own rates lower, especially if they had been receiving less than friendly rates from banks. These new rates could greatly increase the number of Americans receiving loans and buying cars and houses.

Top Reasons Real Estate Home Loans Do Not Get Approved

by Tim Hart

At Home in Bozeman Celebrates the Fourth of July


Before listing them all, I just want to comment on the importance of precedent. What you do in your life, financially and professionally, matters. Try to strive to improve in the areas you know you falter in.

Loan Approval Precedent

Disapproval of past loans stay on your history and will weigh into the decision of future loans. This does not mean if you were denied you will be again, but in the complex picture, it will play a role.

Lack of Full Documentation

Required documents are just that… required. The lender has a huge choice in their hands and little errors like forgetting documents will raise doubts about the honesty of the paperwork. Be transparent and fully disclose all needed documents.

Credit Score

One of the most important numerical decision factors is your credit score. Again, this number establishes precedent. How you have handled your monetary responsibilities in the past is a strong indication of how you will handle them in the future.

Employment History

Monthly income is used to evaluate your fiscal ability. Frequently shifting jobs, demotions, or a high incidence of being fired will paint the picture of an unstable candidate.   

Income:Purchase:Saving Ratio

We all have a baseline income. Where that money goes has a steady pattern. Expenditures and rate of saving develop a portfolio on what you prioritize. One common mistake made by those applying for a loan is the purchase of a large dollar item after applying for the loan. This instantly reduces you ability to quickly pay back the loan and to the lenders, the risk may seem too high.  

Dream Home

The listing you pick to be your home is evaluated just as the applicant is. The house must be legal by all standards for the investment to even be considered.

Avoid the possible mistakes and try to find solutions for the issues that might lead to disapproval. Devote good amount of time and take professional help to prepare your home loan application.


406.570.5730-call me, Real Estate Professional Tim Hart, if you have more questions or need assistance in purchasing  a home.


Tim Hart


At Home In Bozeman--Tim Hart

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