Why Your Credit Score is So Important

Real Estate Agent with CENTURY 21 WESTERN REALTY

The credit scoring model seeks to quantify the likelihood of a consumer to pay off debt without being more than 90 days late at any time in the future. Credit scores have many different ranges, however, the score that is used by 90% of lenders and creditors in this country is the FICO score, and the FICO score range is 300 to 850. Credit scores can range between a low score of 300 and a high score of 850. The higher the score, the better it is for the consumer, because a high credit score translates into a low interest rate. This can save literally thousands of dollars in financing fees over the life of the loan. Only one out of 1,300 people in the United States have a credit score above 800. These are people with a stellar credit rating that get the best interest rates. On the other hand, one out of every eight prospective home buyers is faced with the possibility that they may not qualify for the home loan they want because they have a score falling between 500 and 600.

However, for prospective homebuyers seeking for a home loan with bad credit score, Wells Fargo Home Mortgage offers Credit scores between 500 and 579 require a 10% down payment. Credit scores between 580 and 599 required 5% down payment. As usual credit scores 600 and above require 3.5% down payment. give me a call  for more info!!!!!!

Keller Williams Realty

Robert Rauf
CMG Home Loans - Toms River, NJ

William, Even with FHA guides that say a 500 score is OK, MOST lenders are still requiring over 620, and some even higher...

The new Loan Level price adjustments from Fannie kick in starting in April, at that point a 740 score with 25% down is the basis for the best rate, anything out of that box gets an add on.

Feb 18, 2011 04:03 AM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Live below ones means and pay bills on time. Grandma's advice to all

Feb 18, 2011 04:03 AM