FICO scores - information for buyers

DID YOU KNOW?
Improving your credit score may save you money on your home financing.  That's because higher FICO (Fair Isaac Credit Organization) scores typically result in better interest rates.  There are also industry and lender level guidelines relative to a borrower's credit ratings and history that help determine: Your qualification for certain loan programs. Your capacity to repay the loan.  Your interest rate.

HOW FICO CREDIT SCORES WORK
FICO scores are the credit scores most lenders use to determine your credit risk.  You have three FICO scores, one for each of the three credit bureaus - Experian, Equifax, and TransUnion.  Each credit score is based on information the credit bureau keeps on file about you.  As this information changes, your credit score will change as well.

• When you apply for credit, lenders want to know what risk they would take on by lending you money.
• Your 3 FICO credit scores affect how much lenders will offer you at a given time.
• Taking steps to improve your FICO scores may help you to qualify for better rates from lenders.

FICO CREDIT SCORES BREAKDOWN
The examples shown below are all calculated on a Sales Price of $250,000 with a 20% Down Payment of $50,000 for a Loan Amount of $200,000 as a 30 Year Fixed Rate and Term:

*APR = Annual Percentage Rate  **Monthly Payment does not include taxes or insurance
Tamika Donahue
[email protected]
 
Bart English
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