Homes by Email

Be the first to see new listings as soon as they hit the market!

Quick Search


view all


Any

Any

No Min.

No Max.

Kissinger Bigatel & Brower Realtors

State College, Pennsylvania
Real Estate Team
814-571-8204
Contact Us

Contact Us





* fields are required

FICO® Score - a Brief Explanation

When you apply for a mortgage loan, you expect your lender to pull a credit report and look at whether you’ve made your payments on time. What you may not expect is that they seem to be more interested in your FICO® score.

“What’s a FICO® score?” is a common reaction.

Each time your credit report is pulled, it is run through a computer program with a built-in scorecard. Points are awarded or deducted based on certain items such as how long you have had credit cards, whether you make your payments on time, if your credit balances are near maximum, and assorted other variables. When the credit report prints in your lender’s office, the total score is displayed. Your score can be anywhere between the high 300’s and the low 850’s.

Lenders wanted to determine if there was any relationship between these credit scores and whether borrowers made their payments on time, so they did a study. The study showed that borrowers with scores above 680 almost always made their payments on time. Borrowers with scores below 600 seemed fairly certain to develop problems.

As a result, credit scoring became a more important factor in approving mortgage loans. Credit scores also made it easier to develop artificial intelligence computer programs that could make a “yes” decision for loans that should obviously be approved. Nowadays, a computer and not a person may have actually approved your mortgage.

In short, lower credit scores require a more thorough review than higher scores. Often, mortgage lenders will not even consider a score below 600.

Some of the things that affect your FICO score are:

  • Delinquencies
  • Too many accounts opened within the last twelve months
  • Short credit history
  • Balances on revolving credit are near the maximum limits
  • Public records, such as tax liens, judgments, or bankruptcies
  • No recent credit card balances
  • Too many recent credit inquiries
  • Too few revolving accounts
  • Too many revolving accounts

FICO® actually stands for Fair Isaac and Company, which is the company used by the Experian (formerly TRW) credit bureau to calculate credit scores. Trans-Union and Equifax are two other credit bureaus who also provide credit scores.

Comments

There are no comments for this post. Be the first to comment!

Leave a comment

Comment
Already have an account?

Password Not Required

Kissinger Bigatel & Brower REALTORS® 
1612 N Atherton St
State College, PA 16803
Phone: 814-571-8204
Email: pchiarkas@comcast.net
Brokerage Phone: 814-238-8080

Testimonials

Krissy was great to work with throughout the entire home buying experience. She listened and provided great feedback on houses that we visited. When we got to the buying process she was very positive and knowledgeable with everything. She never left us with a feeling of doubt and was always open  and honest with us. I would highly recommend her to anyone buying a new home in the area ChazRobison
Peter and Krissy were amazing to work with. We had a few "hiccups" in the sale of our house (not due to them) but they continued to do what they said they would and they got our house sold. dakingemt
Our experience with Krissy was phenomenal while purchasing our new home! Krissy is extremely knowledgeable, helpful , pleasant and made herself always available for any questions or concerns we had. We highly recommend Krissy and if we decide to list our home in the future, she will be the one we  call! user4475057
From the time of my listing 10/30/18 to the time of closing, 11/19/18 Peter and his team have provided professional, efficient service. I was kept updated throughout the entire process and appreciated their work on my behalf. maryresides
View All

Connect With Us

Newsletter

Subscribe to our newsletter...

* fields are required

Blog

My Post

Have you ever seen such a beautiful entry way? Come see it and all the other amazing things this well-maintained Bellefonte Victorian has to offer! So much to love - fantastic hardwood floors, bright windows, great yard, sweet back porch. Call today fo... Read more
View All
Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu