916.385.9716 Sonia.Krietz@SNMC.com

When getting a mortgage loan, your FICO score has a major impact on what mortgage options are available to you and what type of interest rate you can expect to pay.

The term “FICO” is an acronym, referring to the Fair Isaac Corporation. The Fair Isaac Corporation is the company that originally devised the FICO scoring system in 1989.

Your FICO score is a compilation of credit scores from the three major U.S.-based credit reporting bureaus: Equifax, TransUnion and Experian.

This score serves as a numeric representation of how much risk you pose to prospective lenders, with a score of 850 being extremely low risk and a score of 300 being extremely high risk.

Since the FICO score is determined by pulling data from all three major national credit bureaus, taking nearly 50 different score figures into account, it is regarded as a fairly objective and balanced scoring system.

The FICO score is determined by evaluating a number of different factors including:

• the length of the individual’s credit history (accounts for about 15% of your FICO score)

• the total amount of debt owed (accounts for about 30% of your FICO score)

• the amount of debt owed relative to how much credit is available to the individual (accounts for about 10% of your FICO score)

• the individual’s payment history (accounts for about 35% of your FICO score)

• the types of credit that the individual utilizes (accounts for about 10% of your FICO score)

Learning more about your FICO score and your credit reports with the three national bureaus is a good first step toward getting your financials in order as you work toward home ownership.

Remember, you’re entitled to a free credit report from each of the credit bureaus on an annual basis, so it’s wise to take advantage of this opportunity to review your credit reports and check for any flaws or errors.

If you’re ready to get a home loan, wish to refinance or require help getting on the path to home ownership, contact Sonia Krietz, with Security National Mortgage Company.

You may wish to complete the pre-application form and Sonia will be in touch to help you proceed through the process. If you have any questions or concerns, you can also contact Sonia Krietz by phone at 916.385.9716.

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