Credit history and scores can play a big role in the your prequalifying stage in the mortgage process.Mortgage brokers order mortgage credit reports from local credit bureaus, which gives individual all credit history and scores.Credit bureaus usually collect information from retailers, banks, finance companies, mortgage broker, and a variety of public sources on all consumers who use any type of all credit, including credit cards, car loans, mortgages,personal loans, and charge accounts. The credit score is always based on a statistical analysis of your credit history. Factors that determine your all credit score vary from company to company, but generally include:

• 40% History of Past Payments - on all types of credit
  

• 20% Amount of Credit Outstanding - balances on your credit cards and other personal loans compared to the credit limits for those mortgages
• 8% Age of Credit - of all credit cards and charge accounts
• 8% Mix of Credit - charge cards, mortgages, etc.
• 8% Recent Credit Inquiries - suggesting that you are seeking additional loans or credit cards

The credit score many brokers use is the FICO score. FICO scores range from 500 to 800, with 900 being the best score. The higher the better chance to get mortgage. Therefore, the better the score, the easier it is to prequalify. These scores are get viewed as very accurate predictors of future delinquencies.

The size of the loan that can be afforded monthly, can estimated through two essential ratios:ratio and debt ratio.
Some home mortgage loan evaluating a credit application are not tied down by strict industry standards. They will look at your mortgage request and see if it makes sense. If further explanations of any situation that will make your application look better, then by all means do so. Document all claims and explanations in writing if possible.
If you would like to get additional information about prequalifying for a mortgage or see how much you can prequalify for, fill out the Short Form.

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