Scoring your Credit – How’s your FICO?

Before buying a home in the Pensacola, Florida area, it is crucial to make sure that your credit is in good condition. The first step in doing so is to learn how your credit score is determined.

In today’s increasingly automated society, it should come
as no surprise that when you apply for a mortgage, your ability to pay can be
reduced to a single number. All the years you’ve been paying your mortgage, car
payments, and credit card bills can be analyzed, sliced, diced, spindled and
mutilated into a single indicator of whether you’re likely to meet your future
obligations.

All three of the major credit reporting agencies (Equifax,
Experian and TransUnion) use a slightly different system to arrive at a score.
The best known is called the FICO score, based on a model developed by Fair
Isaac and Company (hence the name) and used by Experian. Equifax’s model is
called BEACON, while TransUnion uses EMPIRICA. While each of the models
considers a range of data available in your credit report, the primary factors
are:

  • Credit History How long have you had credit?
  • Payment History Do you pay your bills on time?
  • Credit Card Balances How much do you owe on how many accounts?
  • Credit Inquiries How many times have you had your credit checked?

Each of these, and other items, are assigned a value and a
weight. The results are added up and distilled into a single number. FICO scores
range from 300 to 800, with higher being better. Typical home buyers likely find
their scores falling between 600 and 800.

FICO scores are used for more than just determining whether
or not you qualify for a mortgage. Higher scores indicate you are a better
credit risk, and thus may qualify for a better mortgage rate.

What can you do about your FICO score? Unfortunately, not
much. Since the score is based on a lifetime of credit history, it is difficult
to make a significant change in the number with quick fixes. The most important
thing is to know your FICO score and to ensure that your credit history is
correct. Conveniently, Fair Isaac has created a web site www.myFICO.com) that let’s you
do just that. For a reasonable fee, you can quickly get your FICO score from all
three reporting agencies, along with your credit report. Also available is some
helpful information and tools that help you analyze what actions might have the
greatest impact on your FICO score. Each of the credit services offers similar
services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.

Armed with this information, you will be a more informed
consumer and better positioned to obtain the most favorable mortgage available
to you.

 

Source:  Florida Realty of Miami

http://www.floridarealtyofmiami.com/YourFICOScore

Greater Pensacola, FL Real Estate Experts – Making It Happen for Buyers and Sellers!

Grand Realty is a greater Pensacola real estate company that opened its doors in June of 2003. We strive to help all of our clients with their individual real estate needs, whether it’s buying a home in Pensacola FL and the surrounding area or selling their existing Pensacola property.

We have approximately 30 agents with a wide range of specialties that include:

  • Pensacola new home buyers
  • Pensacola short sales
  • Pensacola Foreclosures
  • Pensacola Investment properties
  • Pensacola commercial properties
  • Pensacola vacant land
  • Pensacola water front properties

Grand Realty is also proud to say we have agents who are bilingual, Spanish and Chinese that are placed throughout a good majority of Northwest Florida including Pensacola, Milton, Pace, Navarre, Perdido Key, Jay, Cantonment, Gulf Breeze, and Navarre. The Broker of Grand Realty is also licensed in Alabama. Please feel free to email or give us a call, and from everyone at Grand Realty, thanks for your business!

Grand Realty
3806 Hwy 90, Pace, FL 32571
Office Phone: 850-512-1185
Office Fax: 850-512-1195
Email: Office@GrandRealty.net

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