How important is your Credit History and FICO score?

When lenders look at your ability to pay for your home, your credit history and credit rating play a significant role in determining whether you qualify for a mortgage. If you have a history of paying your monthly obligations on time, that's a signal to a lender that you are likely to make your monthly mortgage payments on time as well. This means that your credit score (or "FICO") will be a factor in the type of mortgage and interest rate for which you may qualify.

Your credit history can also affect the amount required for a down payment, the amount of money you can borrow in relation to your income, or even the interest rate you are offered. But keep in mind that even if you have no established credit history or less-than-perfect credit, there are still loan programs that can help you buy a home.

The first step in the home buying process for many buyers is to understand their credit report and take action to improve their credit scores. If you haven't done it already, our lending partners can help you get a copy of your credit report, and they can help you understand what it all means.

Read some Tips on How to Improve Your Credit Score