WHY MY CREDIT SCORE IS IMPORTANT WHEN GETTING A MORTGAGE?

THE BASICS:

Why is my credit score important? What minimum credit score do lenders require?

Your credit score affects your interest rates when applying for a home or auto loan, your insurance rates, and even some job prospects. Depending on the type of mortgage loan you want, most lenders require a minimum credit score of 620; if your score is below 620, you may still qualify for a loan if there are mitigating factors.

What is a credit score, and how is it calculated?
A credit score is a number that indicates to lenders and other businesses how much of a credit risk you pose if they lend money to you. More generally, a credit score may indicate to a future employer your reliability in meeting your obligations. Your score is based on several factors 

HOW IS MY CREDIT SCORE CALCULATED?
35% -- Payment History
30% -- Amounts Owed
15% -- Credit History
10% -- Inquiries, New Credit Lines
10% -- Types of Credit in Use

Who calculates my credit score?
Four companies calculate your score: FICO, Experian, Equifax, and TransUnion. The FICO score is the standard that most lenders use when they pull your score; FICO scores range from 300 (low) to 850 (high).

If you have any questions about credit or credit reports message or email me at michael@risingpointsolutions.com. Better yet you can contact me directly at 727-835-8416.