Your FICO Score
FICO measures credit-worthiness. Underwriters use three credit bureaus, Equifax, Experian, and Trans Union, to determine your score in the following ways:
1. Delinquencies lower scores, and scores drop when several credit accounts are opened in a short period.
2. A long credit history is better than a new one, and too few revolving accounts makes it harder to evaluate the ability to manage credit.
3. Consumers with “maxed out” cards may have trouble making payments. Too many revolving accounts indicate over-extension.
4. Tax liens, bankruptcies, and use of consumer credit agencies can all lower a FICO score.
5. Small credit card balances and no late payments show responsibility.
If you are contemplating a home purchase, it is wise to contact your lender well in advance of applying for a loan as many issues that have potentially damaged your credit can be repaired with simple steps. A lender's advise early in the home buying process, can save you thousands of dollars in lower interest payments. We work with a variety of lenders to help you through the process. Please give The Richter Group a call at 207-450-9090 to help you with your home buying needs.