Quick Search


view all


Any

Any

No Min.

No Max.

Lakeland Listing of the Day!

View All

DON'T MISS A NEW LISTING AGAIN!

Register Now
Already registered? Login

FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!
*Contact Information is NOT Shared*

BHGRE Olive Branch

BHGRE Olive Branch
Lakeland, FL 33803
863-816-5829
Contact Us

Testimonials

Debra, thank you for all that you have done for us! We appreciate you putting up with us in our search for our first house. Jim, Christine, Bryce and Connor
Debra, we want to thank you for all your hard work and efforts to get my Dads home sold. We also want to thank you for all the "above and beyond the call of duty" you have done in order to get my Dads remaining furniture donated to local charities. Again, thanks for all your professionalism, expertise, advice, hard work in behalf of my Dad. Lyle H. Spiering, Jr
View All
Back to Table of Contents

WHAT’S A FICO®?

What is a FICO® Score?

FICO® stands for Fair Isaac & Company and is the name for the most well known credit scoring system, used by Experian. The credit bureau’s computer evaluates a complete credit profile and assigns a score, which is used to estimate credit worthiness. Each of the three bureaus (Experian, Trans Union, Equifax) employs its own scoring system, so a given person will usually have 3 separate scores. Someone with a higher score will be viewed as a better risk than someone with a lower score. Typically, scores will range from about 600 to 700 or above, although some cases will be outside this range.

What Kind of Score Do I Need for a Home Loan?

There are as many answers to this question as there are loan programs available. Most lenders will take the average of all 3 scores to evaluate an application. Niche loans, such as Easy Qualifier and low down payment loans will have higher FICO® requirements.

How is My Score Determined?

The FICO® model has 5 main elements:

  1. Past payment history (about 35% of score) The fewer the late payments the better. Recent late payments will have a much greater impact than a very old Bankruptcy with perfect credit since.
    Myth - paying off cards with recent late payments will fix things. Payoffs do not affect payment history.
  2. Credit use (about 30% of score) Low balances across several cards is better than the same balance concentrated on a few cards used closer to maximums. Too many cards can bring down the score, but closing accounts can often do more harm than good if the entire profile is not considered. BE CAREFUL WHEN CLOSING ACCOUNTS!
  3. Length of credit history (15% of score) The longer accounts have been open the better for the score. Opening new accounts and closing seasoned accounts can bring down a score a great deal.
  4. Types of credit used (10% of score) Finance company accounts score lower than bank or department store accounts.
  5. Inquiries (10% of score) Multiple inquiries can be a risk if several cards are applied for or other accounts are close to maxed out. Multiple mortgage or car inquiries within a 14 day period are counted as one inquiry.

How Can I Raise My Score

Your score can only be changed by the way that item is reported directly to the credit bureaus (Experian, TU, Equifax). Written confirmation from the creditor is required. It is best to make these corrections before you try to purchase a home, because you can never be sure the exact impact a change will have on your score.

What Does This Mean to Me?

You should have your credit reviewed BEFORE you look for a home, and work with a PROFESSIONAL loan officer to make sure your loan is based on the most accurate information.

Back to Table of Contents




Better Homes and Gardens Real Estate Olive Branch | 863-816-5829 | Contact Us
1715 S. Florida Avenue - Lakeland, FL 33803
Copyright © , All Rights Reserved

            All Rights Reserved. Better Homes and Gardens® is a registered trademark of Meredith Corporation licensed to Better Homes and Gardens Real Estate LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Better Homes and Gardens Real Estate office is independently owned and operated. Any services or products provided by independently owned and operated franchisees, except for real estate transactions conducted through the real estate brokerage business, are not provided by, affiliated with or related to Better Homes and Gardens Real Estate LLC, nor any of its affiliated companies.

 

Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu