How Do You Score for a Mortgage?

Credit FICO scores play a huge role in loan eligibility and mortgage rates.  In general a FICO of 740 or  more generates the best mortgage rate pricing. FICO scores under 620 may not be mortgage eligible and scores between 620 and 639 require extra supporting factors for approval. Different mortgage products have different credit score minimums. Borrowers under 700 score can find their conventional mortgage rate higher by as much as a 1% over someone with a 740 or higher FICO.  FHA and Veterans programs have smaller rate adjustments for lower scores. Borrowers with scores close to a pricing point are those near but just under 740, 720, 700, 680, 660, 640, and 620. Lenders are able to run a “what if” scenario's through their credit bureaus to see what actions may raise a FICO score and by how much. Many times the action is a simple as reducing the balance on some credit cards to 50% or less of the high credit limit. This lender credit assistance can make all the difference for approval and a lower monthly payment.  Here is a link to more info on FICO scores-http://en.wikipedia.org/wiki/Credit_score_in_the_United_States.