Today’s post comes from a lender that I have worked with personally and professionally for 25 years. If you want to purchase a home or if you would like to see if refinancing can better and shorten your current mortgage, give her a call or send her an email.

For most people, a home is the biggest purchase you’ll ever make. When determining your credit worthiness, the lender will consider your financial history. To do that, they’ll be looking at your FICO score. Here’s what makes up your FICO score:

  • 35% of your score is determined by yourpayment history. This includes everything from credit cards to retail accounts, as well as public records like bankruptcy.
    • 30% of your score is determined by youramounts owed. This isn’t just how much you owe, but what types of accounts and what percentage of available credit you’re using.
    • 15% of your score is determined by thelength of your credit history: How long your accounts have been open, and what kind of activity they’ve seen.
    • 10% of your score is determined by your new credit. This just means what recent new accounts you’ve opened, and how long it’s been since previous credit inquiries.
    • 10% of your score is determined by the types of credit used. This shows the lender what proportion of your credit is from credit cards, installment loans, mortgages, etc.
    Having a great FICO score is imperative for getting a great rate on your mortgage loan — and for getting a mortgage loan at all. Still not sure about how your financial history will feature in your search for the perfect home? Reply to this email with your questions. We’d love to help any way we can.


Cayce Connell
Cayce Connell
Residential Mortgage Loan Originator
NMLS# 108276

Perennial Mortgage Group


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