The study found that new home loans do not have a noticeable impact on credit ratings



With house prices continuing to rise, homeowners now have a record $ 22.7 trillion in net worth, the highest amount since the data was first recorded in 1945. report from LendingTree… The publication conducted a survey that showed that although people are not actively using their own capital these days, it will not have a noticeable effect on their credit ratings.

According to LendingTree, more than 1,500 residential loan applications in the 40 largest metropolitan areas in the country had relatively little impact on their credit ratings. In addition, this downgrade of borrowers’ credit ratings usually recovers in less than a year.

“The credit rating of borrowers in all 40 cities analyzed in the LendingTree study fell by an average of 17.5 points in the months after receiving a home loan,” the study said. “At the high level, grades were down about 26 points in Orlando, Florida, and at the bottom level, just under 9 points in Kansas City, Missouri.”

In terms of how quickly scores recover, research has shown that credit ratings typically change on average in 96 days from their lowest to pre-loan levels. Residents of Austin, Texas saw their credit ratings recover the fastest – 70.5 days. Meanwhile, borrowers in Memphis, Tennessee had the longest loan repayment time at 127.9 days, according to the report.


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