LowVARates

Having good credit is key when refinancing or purchasing a home. Mortgage lenders look at lots of criteria regarding credit when deciding an applicant’s credit-worthiness. The main thing that lenders look at is the veteran’s FICO score. A FICO score is a number which represents an individual’s credit rating. It is based off of the compilation of the veteran’s current credit score, forms of credit used, new credit, the length of the credit history and the payment history. When refinancing or purchasing a new home you want to make sure that the borrower has the highest possible score they can have to get the lowest interest rate available. The better your FICO score is, the better your chance is of getting the best rate available. Most VA lenders today are requiring a FICO score of 620 or above but if you currently don’t have a 620 FICO score, don’t worry there are ways to increase it.

By using online sources such as CreditXpert, a program designed to help processing determine what action can be taken to increase a borrower’s FICO score, a borrower can increase their FICO score by following simple steps. CreditXpert gives specific instructions for the veteran to take to improve the his/her overall FICO score. These actions usually require paying down credit card debt or fixing a collection notice. In using CreditXpert, numerous borrowers who at one point had too low of a FICO scores to refinance were able to increase their FICO and ultimately get the lowest interest rate available. So remember if you think your FICO might be too low for the current interest rates available, always call and check because you may be missing out on historically low rates on VA loans.

Tags: FICO score, va credit score, VA Loan, Veteran credit score

This entry was posted on Monday, May 11th, 2009 at 10:03 AM and is filed under Loan Processing, VA Purchase, VA Refinance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.