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Home > Buying Tips
FICO
Your FICO score is your
credit risk report card. Your report lists specific information
including credit cards you have opened and closed, balance activity
and any loans you have.
The higher the score,
the more willing lenders are to lend you their money. A low FICO
score could indicate your inability to make your loan payments
Generally, a FICO score
falls between 300 and 850. A score below 600 indicates a bad credit
risk, while a score above 700 is considered good credit.
Five factors determine your FICO score
- Paying bills on time
- Amount of outstanding debt
- Overuse of credit
- Number of new accounts opened or applied for
recently and credit types
- Length of credit history
Fortunately you can do something to improve your
score. If you have no credit at all, establish credit at a chain
store. Pay bills on time and do not sign up for new debt.
By knowing what factors
affect your score, you can get the numbers running in your favor,
and before you know it, your credit will be in top-notch shape.
Prequalify and Preapproval - the difference
Prequalifying is an informal process - loan agent
or mortgage broker issues a letter stating that if the information
they received from the buyer is accurate, then the buyer should be
able to qualify for a loan
Preapproval is a formal process - buyer makes
loan application to lender and the buyer's credit is checked,
employment verification and source of down payment funds. This is
then looked over by an underwriter who reviews this information. If
everything is in order, the lender then sends a letter saying that
they are approved for a loan subject to a satisfactory appraisal and
title search
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FASY REAL ESTATE
1229 Asbury Avenue
Ocean City, NJ 08226
(609) 398-8000 fax: (609) 398-5084
bfasy@comcast.net
1 (800) 662-3323
cell: (609) 602-4492 |
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