Know the Score! Your FICO score that is!

A good credit history is more important than ever. With the collapse of B/C lending and the elimination of mortgage programs that use to offer 100% financing to people with 580 FICO scores, improving your credit is a must before buying a home. Solid credit keeps down the cost of consumer financing, and it can be the deciding factor in whether an auto or home loan application is approved. The following is an article about FICO scores.

In today's fast-paced, high-tech age, your credit history will be reviewed more often by artificial intelligence than human intelligence. This computerization has made the loan process much more efficient. That's a good thing. But computers take all the subjectivity out of credit evaluation, and that means you have to take ownership of your own credit standing to make sure you're not blindsided by any stain on your record.

It is important that everyone know his or her credit score. Everyone is entitled to one free credit report a year. Various companies, including Experian Consumer Relations (888-397-3742), can show you your credit profile. Fairly frequently, erroneous information appears on a credit report. This can take a few months to correct, which might mean the difference between being able to purchase your dream home or not.

Credit scores usually range between 400 on the low side to 800 on the high side. On rare occasions these ranges can be exceeded. Sometimes a score cannot be obtained for factors like lack of credit history or too few lines of credit.

If you know your score, then you can see what the creditors see and have the ability to get a jump-start. Here is a quick breakdown of what a score means to a creditor:

Note: In Nebraska, first time home buyers have a great option called a NIFA Loan. I have seen buyers with 620 FICO scores get approved for 100% financing and buyers with 600 FICO scores get a FHA NIFA Homebuyer Assistance Loan. Buyers must meet NIFA Income and Purchase price limits. Call or email me, I would be happy to discuss your options and recommend a lender that specializes in NIFA loans.

Steve Lauver REALTOR DEEB Realty - The Better Choice tel.:402-689-7550 fax: stlauver@cox.net http://www.OmahaRealtyPro.com