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Credit Score Explained

When applying for a home loan, you’ll hear about your credit score a lot. What is a credit score, exactly? Credit scores range from 300 to 850 and provide one way of measuring how much risk you pose for repayment. The higher your score, the lower the risk and the more likely your lender will be able to approve a loan. The three major credit reporting agencies, Experian, TransUnion and Equifax, analyze several factors to calculate your scores. For example, they’ll look at how long you’ve had credit, your payment history, how much of your available credit you’re using, the type of credit you have and whether or not there are any settlements or errors in your history. Your local loan officer can help you understand what your credit score means. You can also find more detailed information here under our Home Loan Guide.

By |Published On: February 23rd, 2017|Categories: Mortgage 101|

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About the Author: Guild Mortgage

Founded in 1960 when the modern U.S. mortgage industry was just forming, Guild Mortgage Company is a nationally recognized independent mortgage lender providing residential mortgage products and local in-house origination and servicing. Guild’s collaborative culture and commitment to diversity and inclusion enable it to deliver a personalized experience for each customer. With more than 4,000 employees and over 250 retail branches, Guild has relationships with credit unions, community banks, and other financial institutions and services loans in 49 states and the District of Columbia. Guild’s highly trained loan professionals are experienced in government-sponsored programs such as FHA, VA, USDA, down payment assistance programs and other specialized loan programs. Guild Mortgage Company is a wholly owned subsidiary of Guild Holdings Company, whose shares of Class A common stock trade on the New York Stock Exchange under the symbol GHLD.