About Your Credit Score

Before they decide on the terms of your mortgage loan (which they base on their risk), lenders want to know two things about you: whether you can repay the loan, and if you will pay it back. To assess whether you can pay back the loan, they assess your income and debt ratio. In order to assess your willingness to pay back the mortgage loan, they look at your credit score.

Fair Isaac and Company developed the original FICO score to assess creditworthines. For details on FICO, read more here.

Your credit score comes from your history of repayment. They never take into account your income, savings, down payment amount, or factors like gender, race, national origin or marital status. These scores were invented specifically for this reason. Credit scoring was envisioned as a way to assess willingness to repay the loan while specifically excluding any other demographic factors.

Your current debt load, past late payments, length of your credit history, and other factors are considered. Your score comes from the good and the bad in your credit report. Late payments will lower your score, but consistently making future payments on time will improve your score.

Your 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 assign an accurate score. Should you not meet the criteria for getting a score, you might need to work on a credit history prior to applying for a mortgage loan.

Executive Lending Group, LLC can answer your questions about credit reporting. Call us at (816) 525-8000 & (81.

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