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How Soon Can I Refinance A Mortgage?
How soon can I refinance a mortgage is a question asked by many people looking for mortgage refinance options. However, before we take up your question, it is pertinent to understand what is refinance mortgage and how it is going to benefit you. You...

Obtaining a Business Loan When Your Credit Rating is Poor
Poor credit, unfortunately, is a common problem for many women. Poor credit can happen for a variety of reasons. It can be due to a divorce, when bills weren't paid on time or at all. It can be due to a medical disaster, where bills have piled up...

Online Mortgage Loan Companies Are Convenient
There are many reasons to use the internet to take care of your mortgage loan needs. Online mortgage companies can give you quick answers to your mortgage application and can often times give you an answer of whether or not you have been...

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Three Rules of Thumb for Mortgage Refinancing
You might think that deciding to refinance a mortgage requires only a quick comparison of loan interest rates. Unfortunately, that's not really true. Refinancing is trickier than that! Fortunately, three useful rules of thumb can often help you...

 
Mortgage Loans – Understanding FICO Scores


Apply for a mortgage loan and you'll soon become familiar with FICO scores. Here's a primer on the infamous FICO scoring process.
FICO scores are merely a mathematical representation of your credit record. Credit records are simply a recording of your debts and assets. Credit card balances, for instance, are a debt that appears on your credit record, as do late payments, bounced checks and so on. Credit, of course, is a huge consideration in the mortgage loan process.
A “credit score” is a figure that represents an overall valuation of how you handle credit and the risk level associated with giving you more credit, to wit, a mortgage loan. The loan underwriter will review your credit report for items such as payment history on debts, debt balances and types of credit you already have. A summary of this information is represented by a figure known as you “FICO score.”
FICO
You may be surprised to learn that “FICO” doesn't stand for any credit-related terms. Instead, it stands for Fair, Isaac and Company. This company developed the mathematical formula that produces the much loved or hated FICO scores. The FICO score assigned to you determines whether you love or hate the formula.
FICO scores come in a range of three digit numbers. The lowest FICO score you can get is 350. The highest FICO score is 850, a score for which bankers will bow at your feet. The higher your score, the better your credit situation and the more likely a bank is to provide you with a mortgage loan.
Most people do not have perfect credit. To this end, we find most people have FICO scores ranging from the low 600s to the high 700s. Mortgage applications typically are not rejected because of a few late payments.
If you're considering purchasing a house, you should always try to pre-qualify for a mortgage loan. Getting a reading of your FICO score should be one of the first steps.

About The Author

Dan Lewis is a mortgage broker with http://www.gwhomeloans.com - San Diego mortgage brokers providing home loans and refinances. Visit http://www.gwhomeloans.com/services.html to learn more about options for San Diego mortgages.

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