Florida mortgage rate quotes are based on a borrower's riskiness. Risk is assessed by proprietary means. If we're talking about a lending institution, such as a big bank, these methods will involve running a credit check. A credit check, an inquiry to any of the big three credit agencies in the United States, will instigate a thorough report on the borrower, called a credit report. This credit report will list details about various debts unpaid, and various borrowing activities about the borrower. The report's contents are usually summarized in the way of a credit score, which is meant to be representative of the borrower's creditworthiness. Now, banks that offer these
Florida mortgage rates will vary about how they proceed to react to a credit score. Some banks will weigh a score in light of other circumstances, whether there's co-signer for example, whose own credit score may or may not be higher. Assets also play a large role in decision making processes on the lender's side of things. And perhaps the most important thing is employment; in other words, how is this loan arrangement going to be paid for in the future? What sort of work does the borrower do? What sort of income will he have five, ten, twenty five years from now? Mortgages typically range twenty five to thirty years, so these longer range issues are going to be considered. It should be mentioned that the heyday of subprime practices are long gone; lenders have cracked down, and have gotten (some would say) practical and realistic about their lending practices.