• CMG MORTGAGE, INC. NMLS #1820

Download Case Study: The Credit Score

  • January 19, 2017

 

Buying a new home is a substantial financial commitment, especially for new homebuyers. Preparing sooner rather than later improves chances of securing an affordable home loan. Financial planners recommend prospective borrowers start credit clean-up about six months to a year before a new home purchase.

The credit score is influenced by five factors: payment history (35%), debt-to-credit utilization (30%), length of credit history (15%), credit mix (10%), and new credit (10%). The most widely used credit scores are FICO® Scores ranging from 300-850, with 850 being perfect credit.

Credit score damage occurs when the borrower misses a payment, maxes out a credit card, undergoes debt settlement in the form of a collection, judgement, lien, or repossession, experiences a foreclosure, or declares bankruptcy. A poor credit score will not completely bar the borrower from securing a loan, but will make it more difficult.

Credit will not build itself. Prospective borrowers can take steps to be proactive about improving the credit score before starting to shop for a new home.

 

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© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).