Credit Scores

Want to buy a home but not sure about your credit score?

In order to do a loan with Litton Mortgage, you currently need a minimum credit score of 640. If you credit score is not, 640, we can help give you common advice at ways to improve your score. As a service for our clients, we can also perform what we like to call “What If Scenarios.” We look at your credit report and use a special service provided by one of our credit company vendors to perform hypothetical situations to see what impacts your score the most, or to determine what needs to be done in order to get your score over 640. If you do the work, we will be glad to submit the documentation to all 3 bureaus and typically have your credit report and score updated in 1-2 weeks (as opposed to 1-2 months on average if you submit the information on your own).

We do not charge for offering you advice regarding your credit, but also would like you to know that we are NOT a credit repair company. We like to help our loyal clients and people who are serious about improving their credit and purchasing a home while using Litton Mortgage.


Your credit report is a record of your credit activities. It lists all of your credit card accounts and loans, the balances as well as your payment history. It also shows if any action has been taken against you because of unpaid bills such as a lawsuit or bankruptcy filing. Because businesses use this information to evaluate your applications for credit, insurance and employment, it’s important that the information in your report is complete and accurate, especially if you plan to make a big purchase like a home.


Before deciding on what terms lenders will offer you on a loan (which they base on the “risk” to them), they want to know two things about you: your ability to pay back the loan, and your willingness to pay back the loan. For the first, they look at your income-to-debt obligation ratio. For your willingness to pay back the loan, they consult your credit score.

The most widely used credit scores are FICO scores, which were developed by Fair Isaac & Company. (and they’re named after their inventor!). Your FICO score is between 350 (high risk) and 850 (low risk).

Credit scores only consider the information contained in your credit profile. They do not consider your income, savings, down payment amount, or demographic factors like gender, race, nationality or marital status. In fact, the fact they don’t consider demographic factors is why they were invented in the first place. “Profiling” was as dirty a word when FICO scores were invented as it is now. Credit scoring was developed as a way to consider only what was relevant to somebody’s willingness to repay a loan.

Past delinquencies, derogatory payment behavior, current debt level, length of credit history, types of credit and number of inquiries are all considered in credit scores. Your score considers both positive and negative information in your credit report. Late payments will lower your score, but establishing or reestablishing a good track record of making payments on time will raise your score.

Different portions of your credit history are given different weights.