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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.

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Dick Stanton Real Estate 
5214 West Seneca Turnpike
P.O Box 515, Vernon, NY 13476
Phone: 315-829-2900, Fax: 315-829-4901
Email: DkStanRe@twcny.rr.com
Owner-Principal Broker: Richard Stanton
 

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Dick Stanton Real Estate

5214 West Seneca Turnpike, Vernon, NY 13476

Phone: 315-829-2900. Fax 315-829-4901

Principal Broker/Owner: Richard Stanton

 

We are Dick Stanton Real Estate in Vernon, New York and We are a 'Hands-on Realtor'.   By that I mean... We believe in serving our clients by being courtesy, professional and knowledgeable.  We work closely with You, and all who have a voice in the Real Estate World.  They include other  Realtors, Attorneys, Financial Institutions, Home Inspectors, Contractors, Appraisers, Surveyors, Code Officers, Well inspectors, Septic Inspectors, Radon Testers and Mitigation personnel. We work especially hard and closely for you.  We are your personal contact, not a computer voice.  We are proud of the work we do everyday by staying close to our clients and contacts.  You have a real person to talk to and so do we.  That's us,  a 'Hands-on Realtor'We are Dick Stanton Real Estate in Vernon, New York.  I am Richard Stanton, The NYS Licensed Real Estate Principal Broker, Owner and Founder of Dick Stanton Real Estate with 30 years experience in the Real Estate World. Please feel free to contact us anytime.

Richard Stanton 315-264-1291 Mobile. 315-829-2900 Office. 315-829-4901 Fax. www.dkstanre@twcny.rr.com. Email.  Donald Stanton 315-264-9369 Mobile. Mike McNaughton 315-264-3081 Mobile.  Maria Stanton 315-264-3727 Mobile. Sandra Stanton 315-264-1293 Mobile.  Thank you.