Skip to main content

New Study Tracks Credit Score Recovery After Homebuying

Phil Hall
Oct 31, 2018
New homebuyers can expect an average of four months of falling credit after purchasing their property, according to a new data analysis from LendingTree

New homebuyers can expect an average of four months of falling credit after purchasing their property, according to a new data analysis from LendingTree.
 
On average, credit scores for homebuyers fall by 15 points and take 160 days to reach their low points. Recovery takes an average of an additional 161 days for scores to return to their prior levels.
 
In some markets, credit score recovery times can be faster or slower than the national average.
 
Among the nation’s 50 largest metros, Richmond, Va., had the nation’s fastest credit score recovery after taking out a mortgage: the average initial credit score of 693 only saw a 13-point decline and a 266-day recovery period. Milwaukee had the slowest recovery time: an average initial credit score of 700 and a 11-point average decline required 384 days for recovery.
 
"A house is the biggest purchase most people make in their lifetime, with the accompanying mortgage being their largest financial transaction," said Tendayi Kapfidze, Chief Economist at LendingTree. "Most people know they should work toward having the best possible credit score before applying for a mortgage, as an applicant's credit score can significantly affect the amount and cost of borrowing."
New homebuyers can expect an average of four months of falling credit after purchasing their property, according to a new data analysis from LendingTree

 
Published
Oct 31, 2018
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021
Interfirst Mortgage Launches ONE, Backed By Non-Owner Occupied Properties

ONE is a unique product built on a single interest rate with no adjustments and qualifies off the cash flow of the rental property.

Industry News
Jul 16, 2021
Global Digital Lending Market Projected To Reach $27B By 2028

The Global Digital Lending Platform Market was valued at $7.14 billion in 2020 and is projected to reach $27.07 billion by 2028.

Analysis and Data
Jul 14, 2021
FOMC Discusses Raising Interest Rates

Inflationary pressures have finally forced the Federal Open Market Committee (FOMC) to discuss raising interest rates and tapering its bond-buying program.

Analysis and Data
Jul 14, 2021
Fathom Holdings Inc. Creates New Hispanic Division

Fathom Holdings Inc., a technology-driven real estate platform, announced the creation of their Hispanic Division to more adequately serve this fast-growing demographic. 

Industry News
Jul 07, 2021