When it comes to mortgages and credit, a lot of people feel overwhelmed. There is so much information out there, and it can be difficult to know where to start. In this blog post, we will break down everything you need to know about mortgages and credit score. We'll go over the basics of Fico scores, what they mean for your mortgage eligibility, and how you can improve yours. Stay tuned for more information on mortgages and credit!
If you're thinking about buying a home, then you've probably heard of FICO scores. Fico scores are the most commonly used credit score in the mortgage industry. Your Fico score is a number between 300 and 850 that lenders use to determine your creditworthiness. The higher your Fico score, the better your chances of getting approved for a mortgage. Generally speaking, you need a Fico score of at least 620 to qualify for a conventional loan, and a Fico score of at least 700 to qualify for the best interest rates.
There are a few things you can do to improve your Fico score. One is to make sure you keep up with your payments - late or missed payments can have a big impact on your FICO score. You can also improve your score by increasing your credit limit and keeping your credit utilization ratio low. And finally, make sure to check your credit report for any errors or mistakes - these can lower your Fico score without you even knowing it.
If you're looking to buy a home, it's important to start building good credit now. The sooner you start, the better off you'll be down the road. And if you have any questions about mortgages or Fico scores, don't hesitate to give us a call! We're here to help.
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