Credit Scores

	Shopping for a mortgage loan? We'll be glad to talk about our mortgage offerings! Call us at (219) 947-0001. Want to get started? Apply Online Now.

Before lenders make the decision to give you a loan, they need to know that you're willing and able to pay back that mortgage. To figure out your ability to repay, they look at your debt-to-income ratio. To assess your willingness to pay back the mortgage loan, they consult your credit score.

The most commonly used credit scores are called FICO scores, which were developed by Fair Isaac & Company, Inc. Your FICO score ranges from 350 (high risk) to 850 (low risk). For details on FICO, read more here.

Credit scores only take into account the information contained in your credit reports. They never consider income, savings, down payment amount, or factors like sex race, nationality or marital status. Fair Isaac invented FICO specifically to exclude demographic factors like these. Credit scoring was envisioned as a way to assess a borrower's willingness to repay the loan without considering other personal factors.

Your current debt load, past late payments, length of your credit history, and a few other factors are considered. Your score is based on both the good and the bad of your credit history. Late payments count against you, but a record of paying on time will raise it.

Your report must contain at least one account which has been open for 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. This history ensures that there is enough information in your credit to build a score. Some people don't have a long enough credit history to get a credit score. They should build up credit history before they apply.

AmeriFirst can answer questions about credit reports and many others. Give us a call at (219) 947-0001.