Can you BUY a home with your FICO?

In today's increasingly automated society, it should come as no surprise that your credit will be the major deciding factor in qualifing for a home. Lenders have started requiring a buyers FICO score to be 620 or greater, some programs require a higher credit score. So what happens if your FICO is not good.(SEE BELOW)  

All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score. The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hence the name) and used by Experian. Equifax's model is called BEACON, while TransUnion uses EMPIRICA. While each of the models considers a range of data available in your credit report, the primary factors are:

FICO scores are used for more than just determining whether or not you qualify for a mortgage. Higher scores indicate you are a better credit risk, and thus may qualify for a better mortgage rate.

What can you do about your FICO score? Their are several steps to improve your credit. It all depends on your individual credit issues. The most important thing is to know your FICO score and to ensure that your credit history is correct. Conveniently, You can get your credit report (Apply Online) that let's you do just that and It's Free, you can quickly get your FICO score from all three reporting agencies, along with your credit report.  Once you have your credit we will help you build a plan to improve your credit. Also available is some helpful information and tools that help you analyze what actions might have the greatest impact on your FICO score. Each of the credit services offers similar services on their web sites: www.equifax.com, www.experian.com, and www.transunion.com.

Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.