FICO stands for Fair Isaac Corporation, the company behind the most widely used credit scoring system in mortgage lending. Your FICO score is a three-digit number, typically ranging from 300 to 850, that summarizes your credit risk based on your credit history.
What goes into your score
- Payment history (about 35%) – whether you’ve paid bills on time.
- Amounts owed (about 30%) – your credit utilization relative to your limits.
- Length of credit history (about 15%) – how long your accounts have been open.
- New credit (about 10%) – recent inquiries and newly opened accounts.
- Credit mix (about 10%) – the variety of credit types you manage responsibly.
Why it matters for your mortgage
Your FICO score directly affects which loan programs you qualify for and the interest rate you’re offered – even a modest score improvement can save thousands of dollars over the life of a loan.
Simple ways to improve it
Pay every bill on time, keep credit card balances low relative to your limits, and avoid opening new credit accounts in the months before applying for a mortgage.
Want to know how your credit affects your buying power? Call Dockside Realty at 850.225.9785 or email christine@docksiderealtyinc.com.