A credit score measures a consumer's credit risk relative to the rest of the U.S. population, based on the individual's credit usage history. The credit score most widely used by lenders is the FICO® score, developed by Fair, Issac and Company. This 3-digit number, ranging from 300 to 850, is calculated by a mathematical equation that evaluates many types of information that are on your credit report. Higher FICO® scores represents lower credit risks, which typically equate to better loan terms. In general, credit scores are critical in the mortgage loan underwriting process.
When it comes to ARMs there's a basic rule to remember...the longer you ask the lender to charge you a specific rate, the more expensive the loan.
Adjustable Rate Mortgages (ARM)
September 9, 2015
Mortgage lenders have control over a variety of aspects in the loan process. They lock the loan term and rate, verify the loan information, and draw t...
What do Mortgage Lenders do?
August 8, 1998
A credit score measures a consumer's credit risk relative to the rest of the U.S. population, based on the individual's credit usage history. The cred...