Credit score is calculated based on your ability to pay back for credits (credit cards, etc) you have taken. Your credit score is an important parameter on which lenders depend before deciding upon approving your mortgage request.

Credit scoring was first used as a qualifying factor in the early 1990’s. However, the first authentic credit scoring system was devised by Fannie Mae and Freddie Mac, an automated underwriting system that compared payment histories from millions of similar loans coupled with the credit score of the applicants.

The way in which underwriting system works has also evolved. During the late 1990’s underwriting was done based on the belief that if someone could go to a car dealership and drive off with a brand new car in an hour (a depreciating asset), they ought to be able to obtain a home loan (an appreciating asset). Today, underwriting do take into account the financial status of the applicant, however it is measured along with the credit score to decide upon the mortgage and the rate of interest.

How your credit score is calculated?
Whenever you obtain a credit, your creditor, (the bank or financial institution whose credit card you are using) sends a report of the payment to some repositories. Once you start paying back, the creditor sends the payment history to the same repository, which in turn maintains a record or your payment history. There are three major repositories where creditors send credit information:

• Equifax,
• Experian
• TransUnion

How we help?
We are in this business for over a decade and do have sufficient experience on credit scores. We will educate you on various aspects of credit scores and even help you improve your credit score. We will then offer you the best loan program that fits your specific requirement. As a leading mortgage company, we do have the best loan programs.