First Home

Your Credit

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.

Statistics show that:

  1. Borrowers with credit scores above 800 have only a 1 in 1,292 chance of defaulting on their loan.
  2. Borrowers with credit scores between 700 and 719 have a 1 in 123 chance of defaulting on their loan.
  3. 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. Our industry panel has just released a report entitled "How to Repair Your Credit and Get On With Your Life".

To receive your complimentary copy of this special report simply fill in the form below

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To make sure that we send you the right information for your current situation, please indicate which report you want to receive: If you are planning to make your move in the next 4 months or less, you'll need to organize yourself quickly. However, even within this short time frame, there are many issues you can address. Please order Report #1.

If you think it will be longer than 4 months before you make a move, there are a greater number of issues you can address. Within this longer time frame, the choices that face you are a little broader. Please order Report #2.

Cherry Creek Mortgage
4301 Hacienda Dr. Ste. 120
Pleasanton, CA. 94588
Phone 800-325-2062
Fax 925-520-0231

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