A credit score is one of the many pieces of information that our Farmers Bank & Trust Mortgage team will use to evaluate your application.

So, what is a credit score?

Credit scores are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender determine the likelihood that you will repay the loan on schedule.

The credit score is calculated by the credit bureau, not by the lender. Credit scores are also calculated by comparing your credit history with millions of other consumers. They have proven to be a very effective way of determining creditworthiness.

Things that can affect your credit score include:

  • Payment history
  • Outstanding obligations
  • Length of time you have had outstanding credit
  • Types of credit you use
  • Number of inquiries that have been made about your credit history in the recent past

Credit scores used for mortgage loan decisions range from approximately 300 to 900. Generally, the higher your credit score, the lower the risk that your payments won’t be paid as agreed.

Using credit scores allows us to quickly and objectively evaluate your credit history when reviewing your loan application. However, there are many other factors when making a loan decision and we never evaluate an application without looking at the total financial picture of a customer.

If you have questions about your credit score, or just need to talk to one of our Loan Specialists, call 903-255-1821.


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