Your credit score

When a lender helps prepare our clients to buy a home, one of the first things they do is check your FICO credit scores. FICO has three different scores, and the average score is usually what they look at. This score tells them if you can get a loan and at what rate. Many things are taken into account for these scores to be calculated, i.e. history and usage of loans and credit card payments (available credit).

Late payments and depleted credit cards can kill a score. Default values ​​are even more difficult. Few don’t even have a score, which lenders say can be worse than a low score, but a good lender can help you establish and show you how to establish and increase your score.

Just announced by the Federal Housing Finance Agency (FHFA), two new models will be phased in. FICO 10T and VantageScore 4.0 will replace the current model and include data such as rent payments, utilities, and even phone payments. This can be an advantage for those who have not taken out loans in the past but are otherwise current on other payments.

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According to Tracy Hinton of Gershman Mortgage, if a FICO score is below 580 to 620, or for a first-time home buyer, 640, you may qualify. Then your purchasing power increases from there. Anything over 740 qualifies you for a better rate.

You can view your current score for free (once a year) at, or you can get it by asking your loan officer to help you pre-qualify for a loan.

Along with your credit score, a lender will look at your debt ratio, work history, etc.

Bottom line, when going through the pre-qualification or pre-approval process, please work with a local lender. We have so many horror stories about online lenders that are not based in the Lincoln area.

It’s never too early to start the process, either with your lender or with us, your real estate agents.

Questions? Do not hesitate to contact us, and we hope to be able to guide you to the new home of your dreams.

Rich Rodenburg: [email protected] or 402-440-7570

Kim Soucie: [email protected] or 402-440-9199