First-Time Buyer Tip #1 – Get to Know Your Credit and Credit Histories
It’s no secret. Your credit history is an important factor that affects
your ability to obtain a mortgage for the purchase of your home.
Lenders want to see how you borrowed and repaid money in the past. This is reflected in your FICO score. FICO scores range from 300 to 850, and lenders believe that borrowers with higher scores are more likely to repay their loan.
Posted on December 30, 2017 at 10:38 PM
Category: Credit & Home Finance, First-time Buyer, Glossary of Housing & RE Terms
CFC’s Home Buying & Selling Glossary
Get the credit you deserve by learning the lingo!
CREDIT – An agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date.
CREDIT HISTORY – A record of an individual’s open and fully repaid debts. A credit history helps a lender to determine whether a potential borrower has a history of repaying debts in a timely manner.
CREDIT LIFE INSURANCE – A type of insurance often bought by mortgagors because it will pay off the mortgage debt if the mortgagor dies while the policy is in force.
CREDITOR – A person to whom money is owed.
CREDIT REPORT – A report of an individual’s credit history prepared by a credit bureau and used by a lender in determining a loan applicant’s creditworthiness.
CREDIT BUREAU – An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.
CREDIT SCORE – A computer-determined number (score) that reflects an evaluation of positive and negative credit information about an individual. Many lenders use this number when determining whether to extend credit. The score is available from the credit bureaus, usually for a fee. Credit Scores are sometimes referred to as FICO scores after the Fair Isaacs Company that developed the credit scoring model.
Resource: Fifteen pages of definitions for glossary terms from A to Z available online at
Posted on December 26, 2017 at 11:08 PM
Category: First-time Buyer, Glossary of Housing & RE Terms