10 Things Houston First Time Home Buyers Should Know About Fico Score
Design by Diana Walton- Houston First Time Home Buyer Specialist
Hello and welcome to Houston First Time Home Buyers Edition, formally First Home Houston (FHH), where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining their first home.
A FICO Score is a three-digit number based on the information in your credit reports.
FICO helps lenders determine how likely you are to repay borrowed money.
Your FICO score affect how much you can borrow as well as the interest rate you will get.
FICO measures how long you've had credit, how much credit you have, how much of your available credit is being used and if you've paid on time.
FICO Scores are calculated based on your credit information.
Some insurance and utility companies will check FICO Scores before setting up service.
A good FICO Score can save you thousands of dollars in interest and fees as lenders are more likely to extend lower rates if you present less of a risk for them.
FICO Scores are created by the Fair Isaac Corporation and are used by 90% of top lenders.
FICO Scores are the industry standard for making accurate and fair decisions about creditworthiness.
Every lender determines for themselves what is a good FICO Score and how they will use a FICO Score and other information within the loan approval process.
FICO scores ranges from 300-850. Of course, the higher your scores, the easier it is for you to qualify for all types of loans, and the lower your interest rate may be. These scores, as well as the information in your credit report, does not stay the same and changes over time.
As a first time home buyer, understanding your scores and how it affect your ability to purchase your home is the first step to closing on your home. As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
