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Informative Articles

Cash Out Refinance
If you have owned your home for a period of time long enough to obtain some equity through your monthly mortgage payments and appreciation, you may be considering borrowing off the equity you have established in your home. This can be known...

Credit Help For Mortgage Financing: Beware Of Predatory Lenders
Financing a new mortgage? Beware of "predatory lenders." In November 2005, Montgomery County, Maryland's county council enacted legislation to expand the categories of discriminatory lending activities associated with discriminatory housing...

Now is the Time To Consider A Refinance Mortgage!
If you are thinking about a refinance mortgage, then now is the time. Mortgage rates are at a low level right now and so, it is best to refinance it now. What is a refinance mortgage and is it a wise choice for you? Those are questions to ask...

The Truth About Home Refinance Loans (Avoiding Potential Pitfalls)
Submitted by: John Lee WorldWideReviews http://moneyemployment.worldwidereviews.com/HomeRefinance.htm Online Home Mortgage Refinance Companies. You've probably heard the advertisements on the radio or seen them on the...

What the Bank Won't Tell You About Mortgage Refinancing
So you have a mortgage, and you need to refinance to get your interest rates low. Most people simply walk into their bank, ask to refinance, and then end up paying more money long term than they would have otherwise. Some banks would like everyone...

 
Mortgage Loans – Understanding FICO Scores


Apply for a mortgage loan and you'll soon become familiar with FICO scores. Here's a primer on the infamous FICO scoring process.
FICO scores are merely a mathematical representation of your credit record. Credit records are simply a recording of your debts and assets. Credit card balances, for instance, are a debt that appears on your credit record, as do late payments, bounced checks and so on. Credit, of course, is a huge consideration in the mortgage loan process.
A “credit score” is a figure that represents an overall valuation of how you handle credit and the risk level associated with giving you more credit, to wit, a mortgage loan. The loan underwriter will review your credit report for items such as payment history on debts, debt balances and types of credit you already have. A summary of this information is represented by a figure known as you “FICO score.”
FICO
You may be surprised to learn that “FICO” doesn't stand for any credit-related terms. Instead, it stands for Fair, Isaac and Company. This company developed the mathematical formula that produces the much loved or hated FICO scores. The FICO score assigned to you determines whether you love or hate the formula.
FICO scores come in a range of three digit numbers. The lowest FICO score you can get is 350. The highest FICO score is 850, a score for which bankers will bow at your feet. The higher your score, the better your credit situation and the more likely a bank is to provide you with a mortgage loan.
Most people do not have perfect credit. To this end, we find most people have FICO scores ranging from the low 600s to the high 700s. Mortgage applications typically are not rejected because of a few late payments.
If you're considering purchasing a house, you should always try to pre-qualify for a mortgage loan. Getting a reading of your FICO score should be one of the first steps.

About The Author

Dan Lewis is a mortgage broker with http://www.gwhomeloans.com - San Diego mortgage brokers providing home loans and refinances. Visit http://www.gwhomeloans.com/services.html to learn more about options for San Diego mortgages.

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