Shopping for a loan?

The interest rate you receive can dramatically change your ability to qualify for a loan.  Your FICO score, or credit history will affect the rate you will receive. Ever wonder how your FICO scores are weighted and structured? Well here you go;

 

35% by Payment History

30% by Balances Owed

15% by Length of Credit History

10% by New Credit

10% by Types of Credit in Use

 

And the overall calculated ranges;

 

720 – 850 Excellent, A-paper credit, the “good-guy” rates available

680 – 719 Good, not much of a compromise on rates

620 – 679 OK or Fair, clearly in range for FHA consideration

580 – 619 Low, bottom of the range for FHA consideration, “alternate credit” comes

                 heavily into play

500 – 579 Poor, truly nothing can be done without credit rehabilitation

 

If you are ready or think you are ready purchase a home, now is the time to talk with your lender. If you don’t already have someone you are working with, we have excellent people that can help you get your ducks in order. And in today’s market, more than ever, it is essential to know where you stand with regards to your Purchase Power.