Welcome to 1 Step Home Mortgage
Home Mortgage Lending Article
This is a selection made from among articles on Home Mortgage Lending. For a permanent link to this article, or to bookmark it for future reading, click here.
What is Credit Scoring?
from: John MussiHave you ever wondered what is credit scoring? Credit scoring is a system creditors use to help determine whether or not to give you credit.
How does a creditor decide whether or not to grant you credit? Creditors use credit scoring systems to determine if you'd be a good risk for credit cards and auto loans. More recently, credit scoring has been used to help creditors evaluate your ability to repay home mortgage loans.
Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report.
Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points (a credit score) helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due.
Credit scoring is used because it is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applicants objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals. Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed.
A significant factor in determining your credit score is your payment history. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.
You may freely reprint this article provided the author's biography remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.
Home Mortgage Lending News
Housing Push for Hispanics Spawns Wave of Foreclosures - Wall Street Journal
Housing Push for Hispanics Spawns Wave of Foreclosures Wall Street Journal - The caucus launched a housing initiative called Hogar -- Spanish for home -- to work with industry and community groups to increase mortgage lending to ... Viewpoint: A Push For Homeownership that Backfired Wall Street Journal | Susan Schmidt and Maurice Tamman | January 5 ... |
As Vacant Office Space Grows, So Does Lenders’ Crisis - New York Times
 New York Times | As Vacant Office Space Grows, So Does Lenders’ Crisis New York Times, United States - In the last decade, they barreled their way into commercial real estate lending after being elbowed out of the credit card and consumer mortgage business by ... Real estate industry downsizes A Recap of 2008 and Outlook for 2009 Realtors face declining home sales |
Underestimated, overcharged - Buffalo News
Underestimated, overcharged Buffalo News, United States - He said the general rule is that the Home Mortgage Disclosure Act, the federal law that requires lenders to report their mortgages to the government, ... |
UK Rescue Fails to Spur Bank Loans - Wall Street Journal
 Telegraph.co.uk | UK Rescue Fails to Spur Bank Loans Wall Street Journal - In one bright spot, fewer banks said they were cutting back on corporate and mortgage lending in the final three months of 2008 than in the previous three ... Jeremy Warner: How to get banks lending once more Chancellor considers second bailout for banks as lending crisis ... Our banks 'have to lend more' |
Regional lenders need help, too - Kansas City Star
 The Money Times | Regional lenders need help, too Kansas City Star, MO - Conventional mortgage money and business loans remain too scarce, as regional banks, which are the arteries and capillaries of our credit system, ... Credit crunch shows little sign of easing New year is a time for resolutions and retrospection Richard “I’ve got a problem” Bove |
Groups say changes leave loopholes for mortgage lenders - Portsmouth Herald News
Groups say changes leave loopholes for mortgage lenders Portsmouth Herald News, NH - "We pledge to work with Congress to reestablish and emphasize the fundamentals of collateral valuation as it reviews the future of the mortgage lending ... |
AG Cuomo Announces Groundbreaking Agreement with Major Mortgage ... - Yonkers Tribune
AG Cuomo Announces Groundbreaking Agreement with Major Mortgage ... Yonkers Tribune, NY - The Attorney General’s investigation found that Latino borrowers who received a single home mortgage loan through HCI Mortgage paid on average 55 percent ... |