What makes up your credit score?

If you are in the market to buy a home one ver important component of your interest rate is your FICO score.

How are FICO scores determined.

Answer:

The formula itself is complicated and the FICO company (Fair Isaac Corp) keeps it secret. But here are the basic components:

• A.   35%   Past Delinquencies
  Your payment history
• B.   30%   Debt Ratio
  Your revolving account balances divided by their limits, as a percentage
• C.   15%   Average Age of File
  Length of your account history
• D.   10%   Mix of Credit
  Mix of account types on your report
• E.   10%   Inquiries
  # times you applied for credit in the last 12 months

First time homebuyer tax credit

The first time homebuyer tax credit effectively ends on April 30th. This is an $8,000 tax credit for homebuyers. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
Read more here.