Credit Scores

	Are you looking for a new mortgage? We'll be glad to answer your questions about our many mortgage solutions! Call us at 302.227.4747. Want to get started? Apply Online Now.

Before lenders make the decision to give you a loan, they want to know that you are willing and able to pay back that mortgage loan. To assess whether you can repay, they look at your income and debt ratio. To assess your willingness to repay, they use your credit score.

The most commonly used credit scores are called FICO scores, which Fair Isaac & Company, a financial analytics agency, developed. Your FICO score ranges from 350 (high risk) to 850 (low risk). You can find out more about FICO here.

Your credit score is a result of your repayment history. They don't consider income or personal characteristics. These scores were invented specifically for this reason. "Profiling" was as dirty a word when these scores were first invented as it is today. Credit scoring was developed as a way to consider solely that which was relevant to a borrower's willingness to pay back a loan.

Past delinquencies, payment behavior, debt level, length of credit history, types of credit and the number of credit inquiries are all considered in credit scores. Your score is based on the good and the bad of your credit report. Late payments lower your score, but establishing or reestablishing a good track record of making payments on time will raise your score.

For the agencies to calculate a credit score, borrowers must have an active credit account with a payment history of six months. This history ensures that there is sufficient information in your credit to build an accurate score. Should you not meet the criteria for getting a score, you might need to work on a credit history prior to applying for a mortgage.

At Dynamic Mortgage Services Corp, we answer questions about Credit reports every day. Give us a call: 302.227.4747.