When you apply for a mortgage loan, you expect your lender to pull a credit report and look at whether you’ve made your payments on time. What you may not expect is that they seem to be more interested in your FICO® score.
“What’s a FICO® score?” is a common reaction.
Each time your credit report is pulled, it is run through a computer program with a built-in scorecard. Points are awarded or deducted based on certain items such as how long you have had credit cards, whether you make your payments on time, if your credit balances are near maximum, and assorted other variables. When the credit report prints in your lender’s office, the total score is displayed. Your score can be anywhere between the high 300’s and the low 850’s.
Lenders wanted to determine if there was any relationship between these credit scores and whether borrowers made their payments on time, so they did a study. The study showed that borrowers with scores above 680 almost always made their payments on time. Borrowers with scores below 600 seemed fairly certain to develop problems.
As a result, credit scoring became a more important factor in approving mortgage loans. Credit scores also made it easier to develop artificial intelligence computer programs that could make a “yes” decision for loans that should obviously be approved. Nowadays, a computer and not a person may have actually approved your mortgage.
In short, lower credit scores require a more thorough review than higher scores. Often, mortgage lenders will not even consider a score below 600.
Some of the things that affect your FICO score are:
Too many accounts opened within the last twelve months
Short credit history
Balances on revolving credit are near the maximum limits
Public records, such as tax liens, judgments, or bankruptcies
No recent credit card balances
Too many recent credit inquiries
Too few revolving accounts
Too many revolving accounts
FICO® actually stands for Fair Isaac and Company, which is the company used by the Experian (formerly TRW) credit bureau to calculate credit scores. Trans-Union and Equifax are two other credit bureaus who also provide credit scores.
David L. Britt, MBA
9393 W 110th St Suite 170
Overland Park, KS 66210
We have only the highest praise and recommendation for David. In all transactions David was organized, thorough, and personable. He offered us an objective viewpoint on each house we toured, thereby helping us with our decisions. We found him to be knowledgeable about aspects of realty that surpassed just the legalities of buying and selling properties, and furthermore we were consistently impressed by his willingness to research questions he couldn't answer right away. His vast knowledge of market analysis, contractors, financial options, legal issues, etc. showcases that he is best in the industry. Through our journey, we watched David educate the other realtors while they provided misinformation or demonstrated a lack of experience. He was always expedient in returning our calls, searching for properties, and setting up tours. We looked at many houses and David always had appointments scheduled, maximizing the number of houses to view by the next day.
Then, when we ran into some trouble with our mortgage lender and final inspections, David was instrumental at helping us navigate through the mess so that we could close on our home. His patience with us and our lack of understanding was beyond that of realtor, but more resembling a friend.
In summary, we had a great experience utilizing David for the purchase of our new home. In today's world, customer service is very important and we feel David is the epitome of delivering customer service that would exceed your expectations. We recommend you find out for yourself. We wouldn’t hesitate to recommend David Britt to any person who is looking to buy or sell a home, as well as seek his service in any of our future real estate transactions.
B and S Coffman - Olathe, KS
David Britt is a man of his word; honorable, kind, and very professional. When I called him to ask his help and advice on the purchase of a new home, he made himself available in a moment's notice. As we went through the process of finding it, making an offer, closing the deal, and finally signing all the paperwork, David was a very helpful "partner." He made it look easy and feel comfortable. My daughter and her husband needed a real estate agent too. I recommended they call David. I am very protective of her--and not many sales people would have my stamp of approval--a prerequisite for working with "my baby." David earned that stamp and represented them in the purchase of their new home too! J Cutler - Olathe, KS