Your Credit and How it Affects your Loan

North Capital Group looks at credit histories through a request to credit bureaus to review the borrower’s credit file. This allows us to make a more informed decision regarding loan prequalification. Through the credit report, we acquire the borrower’s credit score, also called the FICO score and this information can be acquired from the major credit bureaus TransUnion, Experiean, and Equifax. The FICO score represents the statistical summary of data contained within the credit report. It includes bill payment history and the number of outstanding debts in comparison to the borrower’s income.
The higher the borrower’s credit score, the easier it is to obtain a loan or to pre-qualify for a mortgage. If the borrower routinely pays bills late, then a lower credit score is expected. A lower score may require a larger down payment, or assess a higher interest rate in order to reduce the risk they are taking on the borrower.