Filed under Credit

FICO Scores

For many first time homebuyer; understanding how their credit score benefits them is foriegn. Your credit scores come from payment history from credit cards, installment loans from banks and mortgages. Your score is also impacted by information that is obtained from court records such as bankruptcy , judgements and tax liens that are attached to your social security number. Your credit score is viewed as the likely hood that you will pay back credit that is extended to you. Credit scores was developed by Fair Isaac & Company and it is called FICO Scores. Your FICO score can range from 300-850. The higher your score the better and the more favorable creditors will view you.

Typically for most lenders issuing a Mortgage a minimum of a 640 credit score is required. However we do have some mortgage programs that do allow below 640 credit scores. The higher your credit score is the better off you will be when it comes to interest rates as well. Most lenders will make adjustments to rates depending on credit. That is what we call risk based pricing.

Please feel free to conatct me if you have any questions regarding your credit or simply need help getting credit or improving it.

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