What is a Credit Score?
A credit score is a three-digit number that represents a borrower’s creditworthiness. It is one of the most important factors lenders use to approve or deny a mortgage.
How a Credit Score Works
Credit scores are calculated using payment history, credit utilization, length of credit history, and other factors. Lenders use this number to evaluate the risk of lending money to a borrower.
Benefits of a Good Credit Score
A higher credit score helps borrowers qualify for better loan terms, lower interest rates, and larger loan amounts. It can also make the mortgage approval process faster and easier.
Capstone for Mortgage Education and Mortgage Training Classes
Capstone Institute teaches future loan officers how to explain the importance of credit scores to their clients. Our mortgage training classes cover all aspects of credit analysis and mortgage education.