Why top real estate producers rely on Keith Brown

"Keith Brown is the Fairfax mortgage lender I've counted on for years. His pre-approvals stick, he uses local appraisers, and his loans close on time." Learn more »

Why homebuyers trust Keith Brown

"Keith Brown got us a great rate on the right type of loan. When there was an underwriting issue, he solved it so we closed on time with no surprises." Learn more »

Call Keith at 703-449-6821 or GET STARTED TODAY!

NMLS ID#195682

Intercoastal's Privacy Notice

Understanding Credit Scores

Why Are Credit Scores Used?

Credit scores are a mathematical formulas used to determine how likely it is that someone will pay their debts as agreed. People with high credit scores find it easier to qualify for credit cards and loans and they enjoy lower interest rates. People with low credit  rates can find credit more difficult to get and creditors can charge them high interest rates or even deny credit altogether without ever worrying about being charged with discrimination.

Credit scores generally range from 350 to 850. Different industries use slightly different formulas to arrive at their scores. The credit card industry, for example, uses a slightly different scoring formula than the mortgage industry. Once your score has been established, here is what it means:

Credit Score Ranges

760: Exemplary Credit.  This is where you will get your best Conventional Mortgage Insurance rates.  

740: Excellent Credit.This is where you get your best Conventional Interest rates.  

720: Very Good. You get your best FHA and VA rates here.   

700: Good. Reasonable rates still available.  

680: Average. You will start to feel the pinch. You can still readily get Conventional financing but you will pay more.  For less than 20% down financing, FHA will likely be a better deal.  

660: Fair. You will pay higher rates and may have difficulty obtaining Conventional financing with less than 20% down.  FHA/VA will be a far cheaper for less than 20% down.  

620: Mediocre.  FHA and VA mortgages still readily available - although you will see definitively higher rates.

Under 620:  Poor.  FHA will still be an option case-by case down to 580 albeit with much higher rates and loan costs.