Re: Someone please share… - Posted by Mike Grohowski
Posted by Mike Grohowski on March 05, 2002 at 12:42:58:
A lot has been written on this subject and I could probably write 5 pages worth now if this was the forum to have lengthy converstaions.
Many of the credit reports you get as a consumer from the credit agencies won’t have the score on them. You have to buy there next level up “product” to get the report with the credit scores on them. I don’t know which of the products you bought from which agency or company so I am not sure if the report you have even has the number. Each company formats it differently so its tough to even tell you where to look.
Most people credit scores range between 550 and 800. 840/850 is the max anything below 500 is considered very bad and most lenders won’t even look at the person.
I would recommend people check their credit reports at least once a year.
As a professional in the industry I see many credit reports and often they have mistakes or old information on them.
Credit scores are probably one of the top 2 things in determining if you can get a loan and which route you go in the process.
My company lends to people with all kinds of FICO scores but always keep in mind, the lower it is the higher your rate.
The better the FICO is the less money you will need to put down and the better your rate.
620 is a major cutoff point. Anything below that and you start getting into Subprime loans which basically means
more down will usually be needed and higher rates.
Between 620 and 680 ==> this is considered decent and you can get most programs and products with reasonable amount of money
down and solid rates. This is where most people fit in at.
Above 680 - 740 area and you are considered pretty solid.
Anything above 740 and you can do anything you want…
The above descriptions are basic but hopefully you get the point.
Always keep in mind though a good mortgage broker can bypass most credit score issues.
Also remember that the credit score is just 1 of the factors of the entire process.
It is important as it will determine which route you must go and what other areas have to be stronger (i.e… assets, down payment, etc).
In terms of experience in RE Deals - that is a minor issue - don’t sweat it.