Credit Scores
One of the items your Mortgage Loan Officer will look at in determining the terms for your loan is your credit score. The most common credit scoring used is your FICO Score. This score is between 350 (considered a high risk) and 850 (considered a low risk).
Credit scoring considers only what is relevant to somebody's willingness to repay a loan. Some of the items considered in determining your credit score are past delinquencies, derogatory payment behavior, current debt level, length of credit history, types of credit and number of inquiries made by others into your credit. Your credit report must contain at least one account which has been open for a minimum of six months or more and at least one account that has been updated in the past six months - for you to get a credit score.
You can obtain a copy of your credit report and should review it for accuracy by going to www.annualcreditreport.com or calling 1-877-322-8228.
If there are any discrepancies in your report, you will need to contact the credit reporting company you receive the report from to clear up any problems. Be aware that a problem could be related to identity theft. To help prevent fraud and keep your credit report accurate, it is important you request the report annually.