How Can My Credit Score Affect
My Mortgage Application?

Your credit score (FICO) can largely affect how much home you can purchase and what interest rate will be offered on your mortgage application. Creditors look at your credit scores as a gauge of your past financial history in order to determine your pattern in paying your bills and paying on time. The higher the credit score, the more likelihood you will be able to purchase your dream home and at a lower interest rate, and thus lower monthly payments.

What is a FICO score?
A FICO score is a credit score developed by Fair Isaac & Company. Credit scoring is a method of determining the likelihood that credit users will pay their bills. A credit score attempts to condense a borrower's credit history into a single number. Fair, Isaac & Company and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this to be acceptable.

Credit scores analyze a borrower's credit history considering numerous factors such as: late payments, the amount of time credit has been established, employment history, and negative credit information such as bankruptcies, charge-offs, collections, etc.

Three credit scores are computed by data provided
by each of three bureaus:

• Experian (1-888-397-3742)
• Trans Union (1-800-916-8800)
• Equifax (1-800-685-1111)

Some lenders use only one of these three scores, while other lenders may use the middle or average score. Unfortunately, errors can occur on your report and this can effect your scores. If you see an error on your report, contact the appropriate credit bureau. All have procedures for correcting information promptly. Any of our mortgage loan consultants would be happy to help you correct your credit report.

How do I find my FICO score?
There are several places online where you can retrieve your credit report information, but none that provide your actual credit score without paying a fee. However, at Middlestead Mortgage, we provide your credit report AND your credit score FOR FREE as part of our debt management analysis for refinancing or for pre-approvals for purchasing a home.

Can I still get a loan with a low FICO score?
Even if you have a FICO score of less than 500 as required for most loan programs, you still have options. Call or come in to talk with one of our knowledgeable staff about which option would be most suitable for cleaning up a less than desirable credit score and/or buying your dream home.

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