The best credit score to buy a house

FICO is a credit scoring system established by the Fair Isaac Corp. FICO scores are estimated to determine the chance that credit users to pay their bills . FICO scores have become the benchmark lending industry for lending decisions . However, not all lenders use FICO scores to determine creditworthiness. Some lenders use the score of other organizations such as Scorex . Many lenders expect that the three major credit reporting agencies - Equifax, Experian and TransUnion - in their lending accord.

Credit Protocole :
Credit scores range from 300 to 850 . According to Freddie Mac and Fannie Mae , which buys mortgages from banks and selling them to investors, FICO score above 620 is considered good. However, Fair Isaac said: "A 620 score does not mean that you qualify for the best rates. This means that you will qualify for a standard rate or at a preferential rate . "Prime" is a broad category , so that lenders have different loan products classified in the rate of 'prime'. " Lenders require higher their most creditworthy customers interest rate is described as the prime rate. Prime rate is based on the target federal funds rate set by the Fed.

Credit articles :
Most mortgage applicants have to make things financially before you can get a good credit score. Consumers should check their credit reports periodically to ensure there are no errors in them . Indications of adverse credit accounts showing payments over 30 days late , collections , judgments , bankruptcies or foreclosures will drop a credit score . It is better to pay old bills , judgments and collections before applying for a mortgage. And once these bills are paid , wait until you report your credit reports as "satisfied" or "paid" .

FICO lawful :
A score below 620 credit is considered high risk . The category of high-risk loans to borrowers that the lender determines candidates risky loans . Scores fall below 620 can provide lender search . Applicants must submit additional documents to prove your creditworthiness. Subprime lenders usually require bank statements and W-2 forms to candidates. Borrowers with credit scores to 620 usually pay higher interest rates .

Good classification :
According to a 2005 survey by GMAC Mortgage , 62 percent of consumers are not aware that a score of 620 or better online for the best mortgage rate , CNN said. Knowing the range of prime interest can help target a consumer credit account in particular. The Treasury Department states, "Lenders differ regarding the underwriting guidelines for mortgages, but the typical credit " A " or a primary borrower - that is, a borrower whose loans are purchased by Fannie Mae or Freddie Mac under his guidance - has a FICO score exceeding 650 , no late mortgage payments and no more than one late payment of 30 days consumer credit.

The great credit :
The non-profit foundation provides assistance Myvesta consumer debt and free the United States , the United Kingdom and Ireland care. In a Bloomberg BusinessWeek story 2001 on credit, said Myvesta score of 650 or higher is considered excellent by most mortgage lenders. Borrowers with excellent credit qualify for the lowest rates , loan terms and financial incentives . No documentation loan (loans are based primarily on a credit account ) can provide borrowers with credit scores of 700 or more .

Mortgage allowance rates :
A credit count is only one part of the process to qualify for the loan. Other factors such as employment history , income and lending decisions impact of debt to income ratio . Ultimately , it is for a lender to decide whether to extend credit to a loan applicant .