What is a Credit Score?
Loan Process
What is a Credit Score?
Your credit score is a three-digit number that represents your creditworthiness. It's one of the most important factors in determining your mortgage rate and eligibility.
Credit Score Ranges
Exceptional: 800–850. Very Good: 740–799. Good: 670–739. Fair: 580–669. Poor: 300–579. For mortgage purposes: Conventional loans typically require 620+. FHA loans can go as low as 500 (with 10% down) or 580 (with 3.5% down). VA loans have no minimum but most lenders want 580–620+. The higher your score, the better your rate.
What Affects Your Credit Score?
Payment history (35%): On-time payments are the biggest factor. Credit utilization (30%): Keep balances below 30% of your credit limit. Length of credit history (15%): Older accounts help. Credit mix (10%): A mix of revolving and installment credit is positive. New credit (10%): Avoid opening new accounts before applying for a mortgage.
How to Improve Your Score
Pay all bills on time — even one late payment can drop your score significantly. Pay down credit card balances. Don't close old accounts. Dispute any errors on your credit report. Avoid applying for new credit 6–12 months before your mortgage application. Ask Dan about rapid rescore options if you need a quick boost.
Checking Your Credit
You can get a free credit report from all three bureaus (Equifax, Experian, TransUnion) at AnnualCreditReport.com. Checking your own credit is a "soft pull" and does not affect your score. When you apply for a mortgage, we do a "hard pull" which may temporarily lower your score by a few points.
Ready to Get Started?
Let our family help yours. Call us at 561-207-8082 or apply online today.