Kay, 404-298-5500, VA and Georgia Relocation Mortgage Specialist
Your Fair Isaac Credit Score (FICO) is a number between 300 and 850. The higher the number, the better. Each credit bureau (Equifax, Experian and TransUnion) issues you a credit score based on the FICO model. While there are other agencies that issue credit score ratings, most lenders use FICO.
Mortgage companies typically look at your “midscore” which is the middle of the three numbers. For example, if your credit scores are 710, 725 and 720, mortgage companies will base their decision on your midscore (720).
Your credit score doesn't only determine whether or not you get a loan, it also determines your interest rate, the maximum amount a lender will grant you, and the variety of mortgage programs available to you. For example, two people can have a mortgage loan approval, and one person could end up having to pay 3% down, while another would have to pay 10%.
In today's tight credit market, the most favorable mortgage terms are available to people with credit scores of 720 and above. Even FHA, which traditionally did not take credit scores into account, now will charge a higher upfront mortgage insurance premium for those who have lower credit scores.
Your credit score is not the only factor used to determine your mortgage. Lenders look at your overall profile, which includes your credit, employment, and assets.
For additional information about applying for a Georgia mortgage loan, feel free to contact me at 404-298-5500.
Posted by Kay,
Georgia Mortgage Officer and VA Loan Specialist.
25 years banking and finance experience.
Helping residents of Lithonia, Dekalb County, and all of Georgia with their mortgage financing needs since 1998.
Not meant to be tax, financial or legal advice. Please consult a professional for information about your specific situation.
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