Your credit score is generally the single most important aspect of your ability to obtain a loan. When locking a conforming or conventional loan, the "middle" score is what lenders are looking for in the approval process. The middle score is the middle of the three major cedit bureaus , Trans Union, Equifax, and Experion. An example of a middle score is as follows. T.U. 710, Equifax 667, and Experion 643. As a rule of thumb, a 620 middle score is the lowest score allowed when applying for a conforming loan. However, there are mitigating factors that do allow a conforming approval to be obtained when the middle score falls below 620; to 600 or even 580. One factor may be significant liquid assets, i.e. large savings accounts, IRAs, 401ks, etc. Other factors could be, low loan to value (relationship of what you borrow to what your home is worth) and excellent mortgage history. Our professionals will work diligently to figure out which of these factors apply to your situation and strive for approval.

Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which best predict future credit performance. Developing these models involves studying how thousands, even millions, of people have used credit. Score-model developers find predictive factors in the data that have proven to indicate future credit performance. Models can be developed from different sources of data. Credit-bureau models are developed from information in consumer credit-bureau reports.

Credit scores analyze a borrower's credit history considering numerous factors such as:

1. Late payments
2. The amount of time credit has been established
3. The amount of credit used versus the amount of credit available
4. Length of time at present residence
5. Employment history
6. Negative credit information such as bankruptcies, charge-offs, collections, etc.

How can I increase my score?

While it is difficult to increase your score over the short run, here are some tips to increase your score over a period of time.

1. Pay your bills on time. Late payments and collections can have a serious impact on your score.
2. Do not apply for credit frequently. Having a large number of inquiries on your credit report can worsen your score.
3. Reduce your credit-card balances. If you are "maxed" out on your credit cards, this will affect your credit score negatively.
4. If you have limited credit, obtain additional credit. Not having sufficient credit can negatively impact your score.

What if there is an error on my credit report? If you see an error on your report, report it to the credit bureau. The three major bureaus in the U.S., Equifax (1-800-685-1111), Trans Union (1-800-916-8800) and Experian (1-888-397-3742) all have procedures for correcting information promptly. Alternatively, we may help you correct any problems as well.