Mortgage lenders use credit score to help determine if you are likely to repay your loan on time. Your credit score is extremely important when being approved for a home mortgage. A good credit score will save you thousands of dollars over the years.
Your credit score is a numeric expression of your credit file history & ability to pay back debts in the past. These scores are sometimes referred to as FICO Score or VantageScore.
FICO has a range of points from 300 to 850. A score over 670 is good and anything over 800 is exceptional.
VantageScore is a report that consists of 3 major credit bureaus TransUnion, Experian and Equifax. Their range of points are from 300 to 850. A score of 700 is good and 750 and above considered excellent.
Different mortgage lenders have different credit requirements. They will be using one of these two rating systems. The credit companies have to follow certain guidelines.
Credit Scores Do Not Consider the Following Information:
Your race, color, religion, national origin, sex or marital status and Your age
Your salary, occupation, title, employer, date employed or employment history, and Where you live
Your mortgage lender may have some helpful ideas on your credit score.
If you have questions on where to start on your process to home ownership please, Don't hesitate to Contact Me!