Bringing Home Buyers Home

What's Your Score?

350 - 850

Credit card companies and lenders rely on credit scores, which determine someone's chances to borrow money - and how favorable the terms will be. Scores range from 350 to 850. Scores below 620 are considered risky; 720 and over are excellent.

There are five categories of scoring: payment history (35%); amount owed (30%); length of credit history (15%); new credit (10%); and types of credit (10%). Lenders receive your score and "reason codes," which are the keys to improving your score.

The debt-to-income ratio is, simply, the way that mortgage lenders decide how much money you can comfortably afford to borrow. It is the percentage o your monthly gross income (before tax) that is used to pay your monthly debts (not your monthly living expenses). Two calculations are involved, a front ratio and a back ratio, written in ration form, i.e. 33/38.

Moving can be a fun adventure or a harrowing experience.

Whether you decide to coordinate your own move or utilize the services of professional Movers it is important to plan in advance to minimize the potential of frustrating set backs. The key to a smooth moving is careful planning. The mortgage industry has adopted several rules of thumb that will help you get the ball rolling.