| Your credit rating is without a doubt on of the factors | | | | low as 550. Now banks and lenders have been forced |
| that lenders will look when you apply for a mortgage | | | | to raise their standards but that does not mean that |
| to purchase a home. In particular they are worried | | | | receiving a purchase or refinance loan is not possible |
| about your FICO score. A company called Fair Isaac | | | | with a 620 FICO. |
| Company created a way to sum up the information on | | | | The key would be to understand the must haves in |
| each of your reports with Equifax, Transunion and | | | | order to secure a home loan, which would be an |
| Experian to compute a number with each of these | | | | established source of income as well as the amount |
| companies. | | | | of income compared to any debt you are already |
| After assigning scores to different reports and | | | | making payments on. |
| studying the data, they came up with the likely hood | | | | Banks and lenders will look at these two important |
| that a borrower would either repay or default on a | | | | factors to determine if you will be able to afford your |
| loan as agreed and they use that information to | | | | home on a monthly basis. Your credit is one things, but |
| determine your interest rate. | | | | your ability to pay for your home on a monthly basis |
| The higher the number, the lower interest rate you will | | | | requires a stable income that can afford your new |
| receive because according to their system, you are | | | | mortgage payment. With these two requirements in |
| less likely to default on the loan and with a lower score | | | | place, it is possible to purchase a home with a 620 |
| comes a higher rate. Before the real estate and | | | | rating. |
| financial crisis, you could receive a loan with a rating as | | | | |