Learn what you need to know about FICO scores.
Your credit score is important. It stands between you and your ability to qualify for a loan. When it comes to buying your first home, it’s even more important. Otherwise known as a FICO score, understanding your credit score is an important aspect of the home buying process. Check out what you need to know about your FICO score.
All About FICO:
Your FICO score is essentially your credit score. Using a variety of data about your credit and debts, the FICO company creates a score to indicate your risk as a borrower. It helps banks and other financial institutions predict and determine how you’ll repay them when you take out a loan. Therefore, it’s extra important when it comes to your mortgage. In regards to the name FICO, back in the day, your credit score would be developed by a company called Fair Isaac Co. Over time the name was shortened to FICO. The name stuck and was officially changed years later.
How Your Score is Determined:
FICO uses all sorts of information to determine your score. They compile information about your payment history, debts owed, how long it’s been since you’ve established your credit, any new credit you’ve used, and the variety in your credit types. The information is collected from credit reporting companies such as Equifax, Experian, and TransUnion, and is then used to create your FICO score.
When it comes to your ability to buy a home, ensure that your credit is in great shape. Get the right support when it comes to buying a home. Dedicated service paired with top-tier escrow services are a must when closing an escrow deal. Contact Brighton Escrow for the assistance! Our Hermosa Beach, California team, is committed to helping you make the most of your escrow process.