Credit Center.

What to Consider: If you are considering buying your first home and wonder where to begin this section will help. You'll be better prepared to apply for a mortgage loan if you fully understand how lenders determine whether or not you are a good credit risk. The lender will look at your: credit history, assets, and ability to pay.

Credit Score: Your credit score is a numeric representation of your credit profile. The higher the credit score, the better credit risk you are. You may never see your credit score, but it is a number between 400 and 900. If your score is over 680, you are considered a premium borrower, which makes you eligible for lower rates and better terms. If your score is below 620, your loan request could be rejected. However, FAM has programs that might be suitable for your needs reguardless of your credit score.

Little/No Credit: If you have little or no credit history, your lender will look for consistent on-time payments to rent and utility companies. To increase and protect your credit rating:
1. Maintain at least one revolving charge account, such as Visa or MasterCard
2. Pay all of your bills on time
3. Don't max out your credit cards
4. Don't apply for too many credit lines (inquiries are reported to the credit bureaus)

Credit Assessment: When you apply for a loan, lenders verify your credit with credit bureaus. These are the items they look for:
1. Lenders usually look for Mortgage, rent, equity line, and second mortgage payment records.
2. Balance and payment record on consumer loans, such as car loans, student loans, and credit cards
3. Bankruptcy records Co-signed loans and property foreclosures.
4. Current debt collection records (open collection items, charge offs, judgments, or liens)
5. Assets. How much are you worth? Do you have enough assets to pay your bills if you lose your job?