Your credit score is a factor that will be considered by the lender when they look at your loan application.  They want to know what your credit history is and whether you have the ability to pay back the loan you are asking for, basically what kind of “risk” you are. 

Good credit translates into lower rates for the home buyer and represents less risk to the lender.  Credit scores can range between a low score of 350 and a high of 850.  The higher the client’s score is, the less likely they are to default on their loan.  We will run a credit report and determine what your credit score is, and if necessary, we can point out some simple ways to help you improve your credit score without enlisting the help of a credit repair service.  The three credit bureaus that make up your overall FICO score:

Once you fill out a loan application and enter into the loan process, you should not run up your charge cards!  This would have an adverse effect on how the underwriter looks at your file. 

And don’t worry, if you have a poor credit score, it doesn’t mean you can’t qualify at all for a loan.  There are loan programs available even if you’ve had a recent bankruptcy.  While you may not get the interest rate you had hoped for, it is an opportunity to start building up your credit again.  Once you begin making mortgage payments on time and in full, your credit standing will improve and you can refinance at a lower rate as soon as the opportunity arises.