Credit ratings are databases results meaning they merely take into account the information contained in a person’s credit reports
Borrowers which have credit ratings less than 620 are not generally closed with the the best price and you may terms and conditions given
They DO NOT consider a person’s income, savings or down payment amount. Credit ratings derive from five activities: 35% of one’s get is based on percentage records, 30% into amount owed, 15% regarding how much time you’ve got got borrowing, 10% per cent for the this new borrowing from the bank are looked for, and you will 10% for the sort of credit you’ve got. The scores are useful in directing applications to specific loan programs and to set levels of underwriting such as Streamline, Traditional or Second Review. However, they are not the final word regarding the type of program you will qualify for or your interest rate.
Many people about mortgage providers was suspicious in regards to the accuracy out of Fico scores.