A Score that Really Matters: Your Credit Score

Before lenders make the decision to give you a loan, they must know if you're willing and able to repay that mortgage. To assess your ability to pay back the loan, lenders look at your debt-to-income ratio. To assess how willing you are to repay, they use your credit score.

Fair Isaac and Company built the original FICO score to assess creditworthines. You can find out more about FICO here.

Your credit score is a result of your history of repayment. They don't consider your income, savings, amount of down payment, or demographic factors like gender, ethnicity, nationality or marital status. These scores were invented specifically for this reason. Credit scoring was envisioned as a way to consider solely what was relevant to a borrower's likelihood to pay back the lender.

Past delinquencies, payment behavior, current debt level, length of credit history, types of credit and the number of credit inquiries are all calculated into credit scores. Your score reflects both the good and the bad in your credit history. Late payments count against your score, but a record of paying on time will raise it.

For the agencies to calculate a credit score, borrowers must have an active credit account with a payment history of at least six months. This payment history ensures that there is sufficient information in your report to assign a score. If you don't meet the criteria for getting a credit score, you might need to work on your credit history prior to applying for a mortgage.

Executive Lending Group can answer questions about credit reports and many others. Call us: 4056158543.


Executive Lending Group

A Division of 1st Capital Mortgage LLC

2401 Tee Circle, STE 102B
Norman, OK 73069