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Before Buying a Home in MN

Important Financial Numbers Everyone Should Know/MNPropertyGroup/Blog

Numbers to Know Before Buying a Home MN

Recently a friend told me she was never good with finances and never really cared until the day she wanted to buy a home and discovered she didn’t qualify for a mortgage. For her, it was a great wake-up call, and she got up to speed pretty quickly. About a year later, she moved into her condo. Today, she not only knows all her financial statistics, but she tracks them regularly.

So just what are these numbers we should know, and why are they important? As you plan for your future, these vital financial statistics will show you where your finances are healthy and the areas where your finances need improvement. If your life plan includes buying a home, putting your kids through college, or retiring early, these numbers will be the guideposts along your path.

Before you Buy a Home, Know Your Credit Score

What exactly is a credit score? It is a snapshot of an individual’s entire credit history translated into a numeric value. Lenders use this number to help them determine if you are creditworthy. The score is calculated by FICO (Fair Isacc Corporation) using data provided by the three credit reporting bureaus, Experian, Transunion, and Equifax. In addition to your FICO Score, another commonly used is a Vantage Score.

Why is this score important? Like your shadow, it follows you everywhere. It is not only a major determining factor in getting...

A FICO Score Explained By MN Realtor

What You Should Know About a FICO Score/MNPropertyGroup

A FICO Score Explained By MN Realtor

By the time you experience initiation into the adult world, you've probably heard the term credit score. It's a number you should be concerned about because others will be, and they will use it to judge your ability to pay back a loan.

So who cares about your credit score exactly? Credit card companies, banks, mortgage brokers, cell phone companies, insurance companies, and landlords, to name a few. Some companies even want to look at your credit score before offering you a job to see how responsible you are.

How is Your Credit Score Calculated

Your credit score is a number that captures your creditworthiness based on your credit history. Three major credit bureaus, Experian, Equifax, and TransUnion, track your financial information. The Fair Isaac Corporation takes this data and uses a model to assign a number known as a FICO score. Most creditors use this score to evaluate you when you apply for a loan such as a mortgage.  

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