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Posts Tagged ‘credit score’


Posted by Campbell-Homes

Last week we talked about how your FICO score is actually determined but what does this little number actually mean when you’re considering purchasing a stylish and comfortable new Colorado Springs home?


According to, your credit score means a great deal to you and to your ability to obtain the best mortgage rates on your new home in Colorado Springs!


It’s important to remember that every lender has their own credit risk standards. These include the minimum credit score that applicants must have in order to qualify for a loan or credit account. Additionally, Lenders require other information including, how much you earn, your regular expenses, and how you manage your credit, checking and savings accounts.


The chart below (provided by provides general guidance on what a particular FICO® Score represents. As you can see, very high FICO® Scores, those above 800, usually mean an individual’s credit report is strong in each of the five categories we discussed in last week’s article. Very low FICO® Scores, those below 400 generally mean an individual’s credit report is weak in each of the five categories.


It’s important to remember that weakness in one category may be offset by strength in other categories. And, one can always improve their FICO® Score by improving the weak areas of your credit profile. If you have purchased your score or received an Adverse Action notice because your credit application was turned down, the reasons associated with your score will give you good ideas for improving your scores over time.


Your FICO® Score Evaluation What it means
760 or higher Great Your score is well above the average score of U.S. consumers and clearly demonstrates to lenders that you are an exceptional borrower.
725 to 759 Very Good Your score is above the average score of U.S. consumers and demonstrates to lenders that you are a very dependable borrower.
660 to 724 Good Your score is near the average score of U.S. consumers, and most lenders consider this a good score.
560 to 659 Not Good Your score is below the average score of U.S. consumers, though some lenders will approve loans with this score.
Lower than 560  



Your score is well below the average score of U.S. consumers and demonstrates to lenders that you are a very risky borrower.


Now that you know what the scores mean to you, you can make educated decisions on purchasing a new Colorado Springs home and take advantage of the best time in the last fifty years to purchase a new home. Since 1965 Campbell Homes has been building stylish and comfortable new homes for sale in Colorado Springs in the finest locations and master planned Colorado Springs Communities with excellent community amenities and the best schools in Colorado Springs. Heck, we’ll even throw in a free finished basement (but, for a limited time only)!


NEW Campbell Homes come standard with peace of mind and a guaranteed move in date in seven Colorado Springs locations. Priced from the low $200s, Campbell Homes’ models are open daily to 6 p.m.  Or, for additional information visit our online sales office at


Help! I’m still confused about getting a loan

Posted by Campbell-Homes

Help! I’m still confused about getting a loan for my new Colorado Springs Home! (part II)
If you’re looking to purchase a home or refinance your current home, chances are you’ve got some questions. You’re not alone and it seems as though the rules are changing daily! To help you navigate through this challenging process, we’ve addressed some of the more frequently asked questions that we hear in the new home sales process with Donni Feldman, an approved Campbell Homes Loan Officer with Peoples Mortgage.

1. How long does it take to obtain loan approval? The average number of days from application to approval will vary from lender to lender, however 7-10 business days is typical. Depending on your credit history, down payment or equity in your home, and the loan program selected, some lenders may be able to approve your mortgage in less time.

2. How long will it take to close if I applied for my mortgage through a “pre-approval” program? If you applied through a “pre-approval” program and were approved, some lenders can close within 3 weeks after a purchase contract has been signed. In most cases, 45-60 days from application to closing is typical. Each lender’s timeframe will vary and the transaction itself may cause the timeframes to vary.

3. How quickly can a lender close on my home loan? Many lenders can facilitate closing 2 to 3 weeks after you have agreed on a purchase contract for a home.

4. Can I close on a home without having to be at the closing table? Many lenders are willing to accommodate what is termed a “mail out” closing. You may also appoint someone to act for you by using a Power of Attorney. In this scenario, you would actually assign someone to sign on your behalf. Each state has its own specific requirements, so please check with your closing agent for state specific requirements. If you select a “mail away,” the lender will coordinate overnight delivery of the documents to ensure a timely closing. Please note this process may require some additional coordination time.

5. How much money will be required at closing? You should consult with your individual lender and closing agent; however, the amount of money needed for cash to close is comprised of your down payment, closing costs, as well as the prepaid items for your initial taxes and insurance escrow accounts. A lender is required to provide you with a good faith estimate of settlement costs at the time of application. Also, typically within 24 hours prior to your closing, the closing agent will provide you with the final sum of money required for the closing.

6. Will my credit history prevent me from getting a mortgage? Many lenders offer a variety of programs that are designed to help people who have experienced financial difficulties get the financing they need to buy or refinance a home. No matter what your credit history looks like, the best way to understand your mortgage options is to contact a qualified mortgage consultant who will help you explore your options.



Posted by Campbell-Homes
Credit score for buying a home

Credit score for buying a home

You’ve heard a lot of chatter about the fact that it’s a great time to purchase a new home – inventory in plentiful, rates are fantastic, and prices of new homes are

even better!  But are you aware that your credit score contributes greatly to the interest rate you will receive on your new home? Today’s low interest rates are available to individuals with good credit scores.  But, what constitutes a good score and why is it so important?  Your credit score tells a lender a great deal about who you are and it’s your right to know what your credit score says about you. Finding out this information is easy, doesn’t cost a lot, and takes only minutes to do.

So what is credit scoring? Simply put, credit scoring is a method of assessing the credit risk of a loan applicant. It uses mathematical models to evaluate a person’s credit worthiness based on their credit history and current credit accounts. The system was first developed in the 1950s, but has come into widespread use in just the last couple of decades.

In the early 1980s, the three major credit bureaus (Experian, Equifax and Trans Union) each developed scoring models that allowed them to offer a score based solely on the data of one individual. Creditors, especially those in the home mortgage industry, frequently use these scores when deciding who gets a loan and at what rate. However, it’s worth remembering that creditors also consider other information, such as your salary or employment history, when making loan decisions.

What’s in a score? Credit scores are reported as a number, usually in the 300 to 900 range. The higher the number, the better the score. Creditors see the number as an indicator that an individual will repay a loan. Typically, scores are determined by reviewing the following data:

•   Your history of late payments

•   Non-payments

•   Current level of debt

•   Types of credit accounts

•   Length of credit history

•   Number of credit inquiries

•   History of applying for credit

•   Bad credit behavior, such as writing bad checks

Personal details such as race, gender and religion are definitely not considered when determining your score. It’s also worth noting that each major credit bureau has its own method for calculating credit scores. However, the scoring models have been fairly well standardized so that a “600” score at one bureau is roughly the equivalent to the same score at another.

What’s a good score? Overall, a score of 650 or above is a sign of good credit. People with scores of 650 or higher will, all things considered, have a good chance of obtaining quality loans at the best interest rates.

Scores of 620 to 650 indicate good credit, but also may point to potential trouble areas that creditors will want to look at and review. A lender may require additional documentation before a loan will be approved.

With scores of below 620, consumers may still obtain a loan but the process may be lengthier and more involved.  All the more reason to work with an approved locally owned lending company who can work one on one with individual homebuyers.

Find out how you score in seconds! Plus, get personalized tips and analysis that can help you improve your credit rating.

General information included in this article was obtained from and For a individual consultation on how to finance your new Colorado Springs home, visit any Campbell Homes sales office or contact Donni Feldman (Peoples Mortgage) at 719-548-5140 to set a personal evaluation of your situation and options.

Campbell Homes are available in Colorado Springs’ finest neighborhoods with the best Colorado Springs Schools.  Campbell Homes are close to work, school and play with easy commutes to Peterson Air Force Base, Schriever Air Force Base, and the United States Air Force Academy.  Our models are open daily to 5 p.m. or you can visit our online sales center 24/7 at


Posted by Campbell-Homes

Each week New Homes for Sale Colorado discusses useful information on homes, family, and community. Covering a different topic each week, this thought provoking and educational blog is provided by new home builder Campbell Homes in Colorado Springs, Colorado.

Over the last several weeks we’ve discussed the pros and cons of purchasing a brand new home, a used home, or a bank owned home.  Obviously we believe investing in Real Estate is a good idea but only you can decide what is right for you and your family!  However, before you make this financial and emotional investment, consider a few things to avoid costly mistakes.

According to, there are 6 key things everyone should take into consideration before investing in Real Estate:

1. Know your credit score: If you’re even toying with the idea of buying a home, you must find out exactly what your FICO score is. If you find it is less than ideal, wage a systematic campaign to raise it. Too many borrowers ignore this step and get surprised when they get interest rate quotes. Once you’ve pored over your credit history and corrected any errors, your next step is to pay down revolving debt balances to no more than 30% usage. That will help raise your score significantly. Why does it matter? The lower your score, the higher your costs of borrowing. Fannie Mae and Freddie Mac, for example, charge higher up-front fees to borrowers with credit scores below 740. For a buyer with a credit score between 680 and 700, the fee comes to 1.5% of the mortgage principal. On a $200,000 mortgage, that adds up to $3,000. Someone with a 740 score pays nothing. 

Lower-score borrowers also get saddled with higher interest rates, about 0.4 percentage point more for the below 700 borrower. That costs an extra $62 a month — $744 a year — on a $200,000, 30-year, fixed rate loan. A mortgage professional in your area can assist you in obtaining your credit score, the appropriate loan for your situation, or even a plan for credit repair.

2. Don’t apply for new credit (like a car or credit card) when buying a home: Anytime consumers open new credit accounts — credit card, auto loan, etc. — their FICO score could drop, according to Craig Watts, a spokesman for Fair Isaac, the creator of FICO scores.

“Hence the admonition to not open other new accounts while your mortgage application is in process,” he said. 

A big purchase would use up a considerable proportion of a borrower’s total credit limit, which results in a drop in the score. Lenders often continue to check credit scores in the weeks before closing. 

”The lender will likely slam on the brakes if the applicant’s credit scores have suddenly dropped below the minimum required for the requested loan rate,” Watts said.

3. Don’t skimp on the home inspection (if you are purchasing a used home): While this step isn’t important when purchasing a brand new home with a full warranty, it’s important to find all the costly flaws on a used or foreclosed home before you purchase. A certified home inspector can find problems with the foundation, electrical, plumbing, roof, attic insulation, and heating and air conditioning and more.

4. Use a professional: If you are purchasing a used home, it’s a good idea to have a professional review your contract.  Remember your licensed Realtor is working for you and looking out for your needs.

5. Know the contingencies: When signing a sales contract, buyers usually have to put down 1% to 3% in “earnest money,” which they don’t get back if they pull out of the deal except under certain conditions spelled out in the contract.  Know the conditions of your contract if you or your spouse is transferred with your job, loose your job, or your existing home fails to sell.

6. Budget for insurance: Don’t underestimate insurance costs and fail to budget for them. Many homebuyers don’t understand just what is — and what is not — covered. Standard policies pay for theft and wind, fire, lightning, hail and explosion damage. Typically not covered on a standard homeowners policy is flooding, earthquake damage, or problems caused by neglect of routine maintenance, according to Janet McMonigal an insurance specialist with Farmers Insurance. Typically an issue in Colorado Springs, flood insurance can run into a lot of money. The cost of $250,000 worth of government flood coverage on the building and $100,000 of its contents can go as high as $5,714 in high-risk, coastal areas.

Our best advise to you when considering investing in Real Estate is to think long term, stay within your means, understand your own risks, and know up front if this is a home for your family that you don’t want to skimp on or a financial investment that is strictly part of your portfolio.