Credit Scores

Before lenders decide to lend you money, they need to know if you're willing and able to repay that mortgage loan. To figure out your ability to repay, lenders assess your debt-to-income ratio. To assess how willing you are to repay, they use your credit score.

Fair Isaac and Company formulated the first FICO score to help lenders assess creditworthines. For details on FICO, read more here.

Credit scores only assess the information contained in your credit profile. They don't consider your income, savings, down payment amount, or factors like gender, race, nationality or marital status. These scores were invented specifically for this reason. Credit scoring was developed as a way to take into account only that which was relevant to a borrower's likelihood to repay a loan.

Deliquencies, derogatory payment behavior, debt level, length of credit history, types of credit and number of inquiries are all calculated into credit scores. Your score is based on both the good and the bad in your credit history. Late payments count against your score, but a record of paying on time will raise it.

Your credit report must have at least one account which has been open for six months or more, and at least one account that has been updated in the past six months for you to get a credit score. This payment history ensures that there is sufficient information in your report to calculate a score. Should you not meet the minimum criteria for getting a credit score, you may need to establish a credit history before you apply for a mortgage.

Price Mortgage Group LLC can answer questions about credit reports and many others. Call us: 405-513-7700.

Basic Pre-Approval

Get the Best Mortgage Rate! Tell us a little about your current needs and we can use that information to match you with just the right loan.

Tell us about your loan needs.
How can we get in touch with you?
Tell us about your credit history.