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Start with
your credit score. This single number will
define whether or not your application will be
even considered for further consideration by
many lenders. Generally, any score over
620 for consumers verifying income and over 700
for those who prefer stated income are
acceptable but this is purely a generalization.
Many lenders differ so order your credit report
and score before applying for a loan. This
way you will at least know your score range.
Important
Note: All mortgage lenders will pull
their own credit report on you (and any other
applicant) so even though you ordered your own
credit report this does not mean the score
you have will be the score used by the lender.
Many factors are involved with the process
including the time between your order and the
lender's order, different scoring systems or
credit bureau versions and more.
What's a Credit
Score...
A credit score is
basically a numerical rating of your credit
history. There are three (3) different
credit bureaus each providing their own score
based on their own unique formulas. The
main credit bureaus are TransUnion,
Experian, and Equifax. Each score is
generated by evaluating a number of factors
including current accounts (such as revolving,
installment and mortgage trade lines), your
timeliness of past and present payments and any
history of bankruptcies, collections or
judgments.
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