I was just wondering how important your fico score is when trying to secure a loan? What would be a good general level to have to get say, 90-100% LTV?
FICO Scores are what lenders use to judge the amount of risk they would be exposing themselves to by lending you money. High FICO scores can get you better interest rates etc, while low FICO scores can/will disqualify you from loan programs completely. FICO Scores arent the only thing that matters, but they are right up there towards the top if you are trying to use your own credit to obtain financing that you can live with.
In our present day living patterns the FICO score is of great importance. It makes it possible to obtain the kind of rates that makes it possible to keep the payments on properties within your capabilities. It has become so necessary that there is a trend today among them that do many many transactions to create entities in which their personal FICO scores are not a part. Corporations are utilized and assets transfered around until it looks like a Merry Go Round. One well known flacky but loveable character out here has on last count eight production companies and his holding corporations for real estate are lelgion. I think his assets are in continual motion as he qualifies the various entities for financing either on picture deals or on real estate deals.
When I read a financial statement on his MultiUnit Holding Corp. I was amazed to find many of the same items he had listed on his Picture Corporation. When I asked him he replied that he was just treating it as a script. Adjusted to the lending organization. The fact that items were moving from ownership to ownership did not seem to bother him he said it was just creative coloring.
I wish his banks, investors and Venture Associates well. I just look and examine on my own. If I see merit I will react, if not I merely throw up and move on.
Do a script for him on spec. Nada!! Present a request for financing? Super Nada. Buy him lunch at the Albanian Restaurant. Yes, he is entertaining, fun and clever. Do business with him. You had better count your fingers after every handshake! Yes he is wealthy
Ok...720 is great but not needed to get conforming rates. Most lenders look for a middle score of 640 range for conforming rates as long as there are no derogs on the credit report.
680 for best rates, 720 for best rates with little documention . I noticed that the better your score, the less lenders seem to probe. Just something I've noticed
Hi,
An interesting aside related to the FICO - My wife and I recently signed a mortgage and they used the lower of our FICO scores, which happened to be mine They ignored her score altogether.
FICO Scores are what lenders use to judge the amount of risk they would be exposing themselves to by lending you money. High FICO scores can get you better interest rates etc, while low FICO scores can/will disqualify you from loan programs completely. FICO Scores arent the only thing that matters, but they are right up there towards the top if you are trying to use your own credit to obtain financing that you can live with.
In our present day living patterns the FICO score is of great importance. It makes it possible to obtain the kind of rates that makes it possible to keep the payments on properties within your capabilities. It has become so necessary that there is a trend today among them that do many many transactions to create entities in which their personal FICO scores are not a part. Corporations are utilized and assets transfered around until it looks like a Merry Go Round. One well known flacky but loveable character out here has on last count eight production companies and his holding corporations for real estate are lelgion. I think his assets are in continual motion as he qualifies the various entities for financing either on picture deals or on real estate deals.
When I read a financial statement on his MultiUnit Holding Corp. I was amazed to find many of the same items he had listed on his Picture Corporation. When I asked him he replied that he was just treating it as a script. Adjusted to the lending organization. The fact that items were moving from ownership to ownership did not seem to bother him he said it was just creative coloring.
I wish his banks, investors and Venture Associates well. I just look and examine on my own. If I see merit I will react, if not I merely throw up and move on.
Do a script for him on spec. Nada!! Present a request for financing? Super Nada. Buy him lunch at the Albanian Restaurant. Yes, he is entertaining, fun and clever. Do business with him. You had better count your fingers after every handshake! Yes he is wealthy
Cheers Lucius 8-) 8-) 8-) 8-)
You generally need a minimum 720 FICO with any CRA (credit reporting agency) to get the best rates.
Ok...720 is great but not needed to get conforming rates. Most lenders look for a middle score of 640 range for conforming rates as long as there are no derogs on the credit report.
680 for best rates, 720 for best rates with little documention . I noticed that the better your score, the less lenders seem to probe. Just something I've noticed
Hi,
They ignored her score altogether.
An interesting aside related to the FICO - My wife and I recently signed a mortgage and they used the lower of our FICO scores, which happened to be mine
Rob