If you have bad reputation history and are finding to get a home mortgage loan, then chances are you are going to need to know all about how the Fico reputation scoring theory works.
Fico - Fair Isaac & firm - is the foremost reputation reporting group that lenders turn to when it comes time to reputation scoring your home loan mortgage application; so if you do have bad reputation history, these guys will know.
The method used by Fico cannot be disclosed because of a decision made by U.S. Congress. There are some things ordinarily known about Fico which that could help you understand why and how you can get approved:
1. The higher your Fico score, the great opening you have of getting that home mortgage loan. Also, the higher your score, the more room you have to negotiate a lower interest rate.
2. If you have a Fico score lower than 500, there is very petite opening you'll be getting a mortgage home loan.
That said, if you have a score of:
500 - 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment.
600 - 640 You should get a 100% home loan financing. Thats right, with no money down.
640 - 700 You should be able to be stylish for a 125% home mortgage loan.
700+ You're in the drivers seat! You should be able to get an perfect rate with perfect terms.
3. Fico depends on each reputation report, so before you apply for a home mortgage loan, if you have bad reputation history, get a copy of your reputation record and make sure there is nothing on there that shouldn't be there. If there is, get it changed before you apply for the home mortgage loan.
4. Wait until after you have purchased or refinanced your home before you buy whatever added on credit. More loans or higher balances can have a dramatic result on your mortgage approval, regardless of whether or not you had over a 600 Fico score before you bought on credit.
5. Remember, the Fico score is only a part of your home mortgage loan application, so if at first you don't result in getting your home loan mortgage, don't give up. Some lenders may still be willing to lend to you!
People with bad reputation often don't understand how the reputation scoring theory works. It is useful to find out more about it when finding to get a home loan with less than perfect reputation to bad reputation or when dealing with sub prime mortgage lenders.
To view our list of recommended bad reputation mortgage lenders online, visit this page: Recommended Bad
Credit Mortgage Lenders
