Welcome or Register

RED BARN REALTY

990 Somerset St.
Watchung, NJ 07069
(908) 754-0111

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

Red Barn Realty has been in business and serving the Watchung/Warren Communites and surrounding towns since 2001. Broker-Owner, Carl Porambo is a 17 year real estate professional who undertands all facets of the real estate business. Carl's local and regional knowledge of the market is beneficial to buyers and sellers alike.

Carl grew up in Scotch Plains, has lived in Basking Ridge for the past 15 years and operates his Brokerage out of Watchung for the past 10 years. His local knowledge is your advantage!

In addition, all of our Red Barn Realty agents live and work throughout Somerset, Morris, Hunterdon and Middlesex Counties of NJ. Combined, our firm has nearly 20 years of experience in real estate. Please feel free to connect with us to inquire about any and all of your real estate needs.

Back to Table of Contents

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.

Back to Table of Contents
Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu