10 things Houston first time home buyers should know about fico score
Image by Diana for Firsthomehouston.com
A FICO Score is a three-digit number based on the information in your credit reports.
FICO helps lenders determine how likely you are to repay a loan.
Your FICO score affect how much you can borrow as well as the interest rate you will get.
FICO measures how long you've had credit, how much credit you have, how much of your available credit is being used and if you've paid on time.
FICO Scores are calculated based on your credit information
Some insurance and utility companies will check FICO Scores before setting up service.
A good FICO Score can save you thousands of dollars in interest and fees as lenders are more likely to extend lower rates if you present less of a risk for them.
FICO Scores are created by the Fair Isaac Corporation and are used by 90% of top lenders.
FICO Scores are the industry standard for making accurate and fair decisions about creditworthiness.
Every lender determines for themselves what is a good FICO Score and how they will use a FICO Score and other information within the loan approval process.
FICO scores ranges from 300-850. Of course, the higher your scores, the easier it is for you to qualify for all types of loans, and the lower your interest rate may be. These scores, as well as the information in your credit report, does not stay the same and changes over time.
As a first time home buyer, understanding your scores and how it affect your ability to purchase your home is the first step in closing on your home. Happy house shopping. See you at the closing table.
Image by Diana for firsthomehouston.com
