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...helping to make your mortgage and home loan buying experience a better one.
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Most mortgage lenders rely on a credit score, called a "FICO
score" to determine a Borrower's credit worthiness when applying for a mortgage. Your FICO score or number will determine what type of interest rate and loan program you are likely to be offered from any one mortgage lender. Each lender may have different guidelines and requirements to fit their individual loan programs. Your FICO score is comprised of a compilation of your credit history from the three major credit reporting bureaus, Equifax , Transunion , and Experian . Since each credit bureau may collect your credit data differently, the mid score of the three bureaus is deemed the most accurate. In general terms, a score of 720 or better will mean that your credit risk is very low and you may be offered a preferred low interest rate and several loan program options. A FICO score in the range of 660 to 719 is very acceptable for many different mortgage loan programs. A score of 620 to 659 indicates a Borrower shows a higher degree of risk to default on a loan, so different guidelines may apply than for a Borrower with a higher FICO score. Under 600, a Borrower is generally considered a high risk for default. A high risk Borrower will definitely qualify for a loan, but the interest rate or terms may not be as favorable as those offered to a low-risk Borrower.
How do I establish credit to qualify for a mortgage?
If you are a young Borrower, or a new Borrower, with little or
no credit history you can establish credit by working for two years, paying off something small, like a student loan each month, and get one or two credit cards and pay them down to zero each month. |
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Tip: To improve your FICO score, avoid opening new charge
accounts, buying a car or furniture on time or looking on the internet for low rate credit deals between the time when you receive a mortgage loan commitment and the time you close. |
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How your FICO score affects mortgage qualifcation.
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The Mortgage Match "Buy Your Home" Express Plan.
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1. Get Preapproved.
2. Receive your Preapproval letter.
3. Find a home to buy.
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4. Fax us your purchase agreement.
5. Sign your closing docs.
6. Take title to your new property.
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Click here for a fast and free preapproval.
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In all
50 states.
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See also...
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Loans in all 50 states.
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