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Don Ernle
PIMA CANYON REALTY

Tucson, AZ 85711-5313
Phone: 520-907-2682
Email: DON@DONERNLE.COM

Thank you for visiting today. If this is your first visit, take your time and look around. I have plenty of information and resources available to you. If you are a return visitor, thank you. I would love to hear from you and tell you how I can serve all your real estate needs.

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FICO® Score - a Brief Explanation

When you apply for a mortgage loan, you expect your lender to pull a credit report and look at whether you’ve made your payments on time. What you may not expect is that they seem to be more interested in your FICO® score.

“What’s a FICO® score?” is a common reaction.

Each time your credit report is pulled, it is run through a computer program with a built-in scorecard. Points are awarded or deducted based on certain items such as how long you have had credit cards, whether you make your payments on time, if your credit balances are near maximum, and assorted other variables. When the credit report prints in your lender’s office, the total score is displayed. Your score can be anywhere between the high 300’s and the low 850’s.

Lenders wanted to determine if there was any relationship between these credit scores and whether borrowers made their payments on time, so they did a study. The study showed that borrowers with scores above 680 almost always made their payments on time. Borrowers with scores below 600 seemed fairly certain to develop problems.

As a result, credit scoring became a more important factor in approving mortgage loans. Credit scores also made it easier to develop artificial intelligence computer programs that could make a “yes” decision for loans that should obviously be approved. Nowadays, a computer and not a person may have actually approved your mortgage.

In short, lower credit scores require a more thorough review than higher scores. Often, mortgage lenders will not even consider a score below 600.

Some of the things that affect your FICO score are:

  • Delinquencies
  • Too many accounts opened within the last twelve months
  • Short credit history
  • Balances on revolving credit are near the maximum limits
  • Public records, such as tax liens, judgments, or bankruptcies
  • No recent credit card balances
  • Too many recent credit inquiries
  • Too few revolving accounts
  • Too many revolving accounts

FICO® actually stands for Fair Isaac and Company, which is the company used by the Experian (formerly TRW) credit bureau to calculate credit scores. Trans-Union and Equifax are two other credit bureaus who also provide credit scores.

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Testimonials

Don represented us thru the entire process, not just the paperwork, he kept us informed and was present for the inspections, the septic certification and the final walk thru inspections despite the great distance out of the Tucson area he had to travel. I highly recommend him. Cathie & Paul Neuber
Very professional and punctual service. A true communicator. Always available to serve our family needs in Real Estate. Bill & Arlette Penn
Don is very nice to do business with and I have no reservations in recommending his services. Lee R. Caruth
I had been looking for property to fit my needs for 2 years unsuccessfully. Don found exactly what I was looking for in just 2 WEEKS. I cannot recommend Don Ernle highly enough..... John C. Sweeney WA6PBD
I recommend Don Ernle to any picky home buyer. He patiently showed my family 150 homes, some of which we visited multiple times, as we shopped for our home. Don is extremely knowledgeable and was able to point out the good and the not-so-good features of every home we visited. Don started out as our Real Estate agent and became our friend. When it's time to sell our home, we will call Don. Diane Zimmerman AA3OF & Robert Zimmerman KB3IWD
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