What is credit scoring and how does it affect my mortgage?

Credit scoring is a tool used by lenders to help decide whether to approve or deny a loan application. It is used to evaluate an applicant’s creditworthiness and determine the likelihood of them being able to repay the loan. This score is based on the applicant’s credit history, including the type and amount of debt they have had in the past, as well as their payment history. In California, it is important to have a good credit score in order to get approved for a mortgage loan. This is because lenders will look at your credit score when deciding whether to approve or deny your application. The higher the score, the more likely it is that you will get approved. On the other hand, having a low credit score may mean that you are less likely to get approved for the loan. If you have a good credit score, you may get better terms on your mortgage, such as lower interest rates and lower fees. However, if you have a poor credit score, you may be offered higher interest rates and higher fees. That is why it is important to stay up to date on your credit score, and work to improve it if you want to get the best terms on your mortgage loan.

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What is credit scoring and how does it affect my mortgage?

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