The ABC's of Getting a Home Mortgage Loan
Conventional wisdom has it that there could not be a better time to capitalize on attractive low mortgage interest rates and rock bottom real estate market prices. That being said, here are some very important steps to consider for those in the market to purchase a new home. The first and foremost consideration is to determine whether you are, in fact, in the financial position to buy a home. It is therefore a good idea to check your credit report and FICO (Fair Isaac Corporation) score beforehand to see if you have the creditworthiness to move forward in purchasing a home.Credit Report and Scoring
Your FICO score is a complex credit-scoring formula that assesses the risk that a borrower may default on a loan. It is derived from the three credit reporting agencies (Experian, TransUnion, Equifax) that appear on your credit report and will be indicative of the interest rate that you will pay on your mortgage loan.
The good news is that consumers are offered one free copy of their credit report per year, but the bad news is that the actual FICO scores are not included in these free reports. Thus you will still be required to pay for this scoring which is highly recommended to see exactly where you stand. At the time of this proactive investigation you may want to "clean up" your credit to assist in accelerating your FICO score to facilitate getting the best deal on your home mortgage loan.
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