Buyer and Seller information for Chautauqua Lake and County NY Real Estate



  WHAT'S A FICO?

What is a FICO Score?

FICO stands for Fair Isaac & Company and is the name for the most well known credit scoring system, used by Experian. The credit bureau's computer evaluates a complete credit profile and assigns a score, which is used to estimate credit worthiness. Each of the three bureaus (Experian, Trans Union, Equifax) employs its own scoring system, so a given person will usually have 3 separate scores. Someone with a higher score will be viewed as a better risk than someone with a lower score. Typically, scores will range from about 600 to 700 or above, although some cases will be outside this range.

What Kind of Score Do I Need for a Home Loan?

There are as many answers to this question as there are loan programs available. Most lenders will take the average of all 3 scores to evaluate an application. "Niche" loans, such as Easy Qualifier and low down payment loans will have the higher FICO requirements.

How is My Score Determined?

The FICO model has 5 main elements:

1) Past payment history (about 35% of score) The fewer the late payments the better. Recent late payments will have a much greater impact than a very old Bankruptcy with perfect credit since.

Myth - paying off cards with recent late payments will fix things. Payoffs do not affect payment history.

2) Credit use (about 30% of score) Low balances across several cards is better than the same balance concentrated on a few cards used closer to maximums. Too many cards can bring down the score, but closing accounts can often do more harm than good if the entire profile is not considered. BE CAREFUL WHEN CLOSING ACCOUNTS!

3) Length of credit history (15% of score) The longer accounts have been open the better for the score. Opening new accounts and closing seasoned accounts can bring down a score a great deal.

4) Types of credit used (10% of score) Finance company accounts score lower than bank or department store accounts.

5) Inquiries (10% of score) Multiple inquiries can be a risk if several cards are applied for or other accounts are close to maxed out. Multiple mortgage or car inquiries within a 14 day period are counted as one inquiry.

How Can I Raise My Score

Your score can only be changed by the way that item is reported directly to the credit bureaus (Experian, TU, Equifax). Written confirmation from the creditor is required. It is best to make these corrections before you try to purchase a home, because you can never be sure the exact impact a change will have on your score.

What Does This Mean to Me?

You should have your credit reviewed BEFORE you look for a home, and work with a PROFESSIONAL loan officer to make sure your loan is based on the most accurate information.

 

[ Back To Mortgage Information ]

A Better Way to Buy & Sell Chautauqua Lake Real Estate
Google Groups Subscribe to Chautauqua Lake Living
Email:
Browse Archives at groups.google.com
Google
WWW chautauqualakehomes.com
Real Estate Roster Real Estate Link World

Real-Estate-Agents.com

ActiveRain Real Estate The Simple Man's Guide to Real Estate
Real Estate investing made simple. Includes free personal coaching, contract software, more.
We're listed at
Real Estate & Mortgages
Real Estate & Mortgages
Total Real Estate Solutions Top 100 Best REALS Top 100 Sites LinkRE.com - Real Estate Resources and Directory REALS - A Comprehensive Real Estate Directory Real Estate

Realty Images Site-Ring
Click Image
Courtesy of Realty Images

 Valuecom Real Estate Gold
Indexed by State
Real Estate Agent Directory For all your Bemus Point New York area Real Estate Needs - Rick and Julia McMahon SeekOn/Agencies Search the Web Blog-Watch - The Blog Directory LS Blogs
Try comparing a house in-town to a less expensive house out-of-town & see the actual cost of commuting for yourself. Wether commuting in Chautauqua County or your locale, buying a home that is farther away from work may have a lower mortgage payment, but you'd be surprised at how much more you'll spend by driving to and from work.
Volume/Distance Units?
Current Cost of Fuel
$
Do You Plan to Buy or Rent?
Loan Amount of Home in Town A
$
Loan Amount of Home in Town B
$
Mortgage Interest Rate
%
Commuting Details (more info)
Add this calculator to your site. Download it here.


Search The MLS | Featured Listings | Home Finder/Rentals | FAQ's about Chautauqua | Community Info/Links | Buyer/Seller Info | Home | Chautauqua Lake Blog | Market Analysis | Contact Rick & Julia | Open Houses | About Us | Corporate Website | Market Facts | Win  1000 | Mortgage Rates

Website design and hosting by iHOUSE ®

Site Admin Menu