Understanding Basics of Credit

In real estate, the term "Location, Location, Location" is what buyers quotes. In lending, the term "Credit, Credit, Credit" is what lenders quote. 

Your credit is one of the major factors in financing for a home loan. No credit mean no funding in 90% of cases. 

The chart below illustrates how credit score stake up in the United States. 

Do you know where your credit falls in this chart. Is it a A++ or F-? 

In the eyes of a mortgage lender:

  • 300-550 - Poor Credit
  • 550-620 - Subprime
  • 620-680 - Average Credit
  • 680-740 - Good Credit
  • 740-850 - Excellent Credit
There are many ways to improve your credit score. 


To obtain a mortgage loan, many lenders require a borrower to have at least at 620 credit score. The chart below illustrates the breakdown of how credit is analyzed by the three credit bureaus. If your credit is less than 600, you can improve your score. 



Credit Improvement Form
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