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Credit Questions
One of the major factors considered when determining qualification for a loan
is your credit score. Credit scores range from a low of 375 to a high of 900
points. The higher your score, the better. Your credit score measures:
Your payment history
Your outstanding debt
Your credit history
Your pursuit of new credit
The types of credit you use
The major credit-reporting agencies are: Experian, Trans Union, and Equifax. They all use credit scores and may have slightly different information about you. Consequently, each may have different scores for your credit.
What's an acceptable score to become a homeowner?
Lenders want to be sure a person has a strong likelihood of making their payments consistently and on-time. No lender ever wants to foreclose on a home.
We work closely with several lenders and they each use different criteria for determining what score is acceptable. To find out how you score click here:myfico.com
Statistics show that:
- Borrowers with credit scores above 800 have only a 1 in 1,292 chance of defaulting on their loan.
- Borrowers with credit scores between 700 and 719 have a 1 in 123 chance of defaulting on their loan.
- Borrowers with credit scores below 600 have a 1 in 8 chance of defaulting on their loan.
Income, job history, available assets, and the property are also considered in underwriting a loan. Borrowers with credit scores below 600 usually have to be stronger in these other areas to get approved. Underwriting is a blend of credit score review along with the other factors.
Don't despair if your credit score is low Your credit score can be improved over time simply by making payments by the due date. Also, the credit agencies now offer "rapid re-score" options for a fee. We would be happy to review this option with you.
Consumer disputes about information on your credit report can be resolved by
calling:
Equifax: (800) 685-1111
Experian: (800) 831-5614
Trans Union: (800) 634-8440
We have a wide variety of loan programs available, some of which are very liberal about accepting low credit scores.
R.E. Opportunity Network
3160 Crow Canyon Rd. #300
San Ramon, Ca.94583
Phone 925-330-6484
Fax 925-362-0849
