Your Mortgage Credit Score
January 31st, 2009, Written By: admin
Your mortgage credit score is no different than your credit score for an auto loan, renting an apartment, or any other financial service you seek approval from. What may be confusing is that there are many different credit scores provided by many companies that try to come up with a way to compute how likely you are to pay your bills.
Most banks and lenders use what it known as the FICO Score, which is the standard when it comes to reviewing your credit worthiness. When you order your mortgage credit score, make sure you are receiving your FICO Score as this is what your lenders will likely be reviewing as well.
Why Investigate Your Mortgage Credit Score?
Before buying a home, you’ll want to closely review all 3 credit reports and get your current credit score. You want to have this information before you visit the banks and ask for a mortgage. There’s a good chance that you will be surprised with what you see.
One in four credit reports contain errors that are serious enough to damage your credit rating. The last thing you want to do is visit your bank for a mortgage when you have a foreclosure already listed on your file. Even if it is not true, the bank will not just take your word for it. You’ll want to get that fixed prior to going to the bank.
Secondly, when you know your credit score before applying for a loan, you may be better suited to negotiate a better rate on your loan or get approved for more money. Your mortgage broker gets paid on the loan they sell you and are motivated to give you the highest rate possible. Informed consumers who know approximately what they should be able to get approved for are able to negotiate much better terms.
Obtain Your Mortgage Credit Score
Categories: Credit Score Information
