Your FICO (or credit) scores determine the type of home loan that you can qualify for, along with what interest rate is available to you. The better your FICO scores, the better the financing available to you – it’s that simple.
Most lenders are discontinuing their more lenient loans and are offering loans with stricter guidelines.
Here is what determines your FICO score:
- 35% – Past payment history
- 30% – Outstanding debt utilization
- 15% – History of credit establishment
- 10% – Pursuit of new credit inquiries
- 10% – Types of credit in use
