FICO Score

Important to Home Mortgage Loans

Information about how your FICO score is calculated. If you have any questions concerning the home loan process, please contact your Premier Home Mortgage Loan Expert who is on standby ready to assist you with your home mortgage needs.

How does the FICO score work?

When you apply for a mortgage, the prediction of your credit performance is measured by a numerical score. Although there are slight differences among the systems used by major credit reporting agencies, the FICO model is the most popular. The FICO scoring system was developed by Fair Isaac and Company, with the goal of filtering out non-relevant factors, such as race or gender. This single rating score sums up your credit history, projecting the likelihood of meeting future payments and indicating your level of credit risk. Higher scores indicate a better credit risk . These scores not only may qualify you for a mortgage, but possibly better mortgage rates also. As with the other major scoring models (BEACON and EMPIRICA), FICO takes into account the statistics available in your credit report. Each item of data is assigned a weighted value, resulting in a single score that ranges from 300 (low likelihood of repayment) to 850 (high probability of repayment).

A typical rating for a home buyer might fall within the range of 600 to 800. These credit scores particularly evaluate:

  • Payment History - Have your payments been timely?
  • Credit Card Balances - What balances do you still owe?
  • Credit History - What credit have you maintained and for how long?
  • Credit Types - What type of credit have you obtained?
  • Credit Inquiries - How often have you had your credit checked?

As most of these factors cover a timeline of credit history, there is not much you can do to change your score at the time of applying for a mortgage. However, you can begin to monitor your credit rating, know what your score is and ensure that the history is correctly recorded.

For information and tools to help you, Fair Isaac has created a web site (www.myFICO.com ) that lets you access your FICO score from all of the three major reporting agencies (Equifax, Experian and TransUnion), along with your credit report. The FICO site and each of these reporting agencies’ sites (http://www.equifax.com , http://www.experian.com , and http://www.transunion.com ) offer services to help you determine the best way to impact your FICO score. When you have access to pertinent information, you will be in a better position to obtain the optimum mortgage available to you.



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Testimonials

Premier Nationwide Lending has completely exceeded our expectations in the home loan process. We are building our 3rd home and they have gone above and beyond to ensure the best loan product for our needs, as well as saved us a lot of money! When the builder’s lender said a loan was not available, Premier Nationwide Lending’s loan officer worked hard to find that it was indeed available and made it a reality for our family. Words cannot accurately express our gratitude for having been introduced to Premier. Our loan officer was a complete pleasure to work with and someone you can trust with such an important decision!

Mark & Deanna H. - Homebuyer

I’ve been a successful Realtor for 28 years with one of the largest firms in the country. I met a loan officer with Premier several years ago at a seminar and was very impressed with her knowledge of buyer assistance programs, etc. I referred her to several of my first time Buyers and found her to be excellent. Every client that I referred her to was pleased with the process and the service and spoke very highly of her. Her communication skills, her attention to detail, her knowledge of the process, her commitment to getting the job done in a timely manner cannot be matched. Her staff and her processer are the best. I give her name to all of my Buyers, in all price ranges, and highly recommend they talk with her about their new purchase. I have worked with many loan officers over the years and Premier is the best I’ve EVER worked with.

Gerry J. - REALTOR

What a dynamic team of supporting and knowledgeable professionals! Each of my experiences with Premier Nationwide Lending has been nothing short of excellent. When they say, “We pride ourselves in delivering the industry’s best service and experiences,” they mean every word. Thank you for standing consistently behind your commitment. I eagerly look forward to doing more business in the future.

Vanja G. - Homebuyer

Thank you so much, Premier Nationwide Lending, for helping my family move into our dream home! Your hard work and dedication speaks volumes about your personal character. Although we never met in person, you still made a wonderful imprint in our hearts. Thank you for the late nights, patience, timeliness, guidance and thorough explanations throughout our first home buying experience. We definitely couldn’t have done it without you! Premier Nationwide Lending has a “Genuine” on their team, who we just so happened to be referred to. God is Good!

Carlo & Yvonne S. - Homebuyer

I cannot speak highly enough of my experience with Premier Nationwide Lending! I am still in awe of how easy these individuals made the loan process. All my questions and concerns were addressed in a timely manner with a wealth of expert knowledge. I was given the same personal attention one would expect from a local lender. You would have never known that I was working with a lender half a state away. I can say, without a doubt, that when the time comes to buy a new home I will return to Premier Nationwide Lending.

Stephanie B. - Homebuyer

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