If you’re contemplating buying a home, you should know how important your FICO score is when it comes to obtaining a favorable mortgage interest rate on your loan. Your FICO score is the number that summarizes your credit risk. Basically, the higher your number, the less risk the lender believes they have in lending you money. Thus, the higher your FICO score, the lower your interest rate will be.
The factors that determine your FICO score are:
- 35% payment history
- 30% debt levels
- 15% length of credit history
- 10% credit inquiries
- 10% mix of credit
So, keep paying your bills on time and control your debt. It will benefit you when you go to obtain a loan on your next home!
If you are looking to buy or sell your home, let me help you! Contact me today and we can discuss how we can meet your goals, fulfill your dreams and paint your perfect picture.
Source: myfico.com
