When you apply for credit - whether for a car loan, mortgage, credit card, etc., information in your credit file is fed into a statistical model. That model assigns a numerical score designed to predict your risk as a borrower. The higher the score, the safer the borrower (from the creditor's point of view). Credit scores have been utilized by lenders for over 20 years, but have only become common practice in the mortgage business in the past 5 years. The most widely recognized score for the mortgage industry is the FICO, or Fair Isaac Score. There are three credit bureaus in the country of which each have their own names for the FICO score. The FICO score actually is from Experian, while Equifax uses Beacon scores and Trans Union has Empirica scores.

How does my Credit Score affect getting a mortgage?

FICO scores range from approximately 350 to 875 points. The higher the number, the lower the risk of default. A high credit score may often mean a speedy and competitively priced mortgage loan. On the contrary, a low score could mean higher interest rates, and more documentation. Many lenders do not make loans to consumers with scores under 620. (But Florida Mortgage Group does!)

How can I get my credit score raised?

It may take some time, but it can be done.

Be sure to make all payments on time.

Keep balances on open accounts as low as possible.

Close the accounts that you