Credit Evaluation School Dec 2022

Reference Guide for Credit Documents

Credit Report • Provided by credit agencies (Experian/Equifax/TransUnion) • Lists all debts and payment history from reporting institutions, including collections and bankruptcies • Provides a score representing the creditworthiness of a person • Takes into account several factors (payment history, credit utilization, length of credit, types and credit used, credit searches) • FICO scores range from 300 to 850 • Banks will generally establish minimum credit score requirements (e.g. >660)

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Reference Guide for Credit Documents

Deed of Trust / Mortgage • Contract between bank and the borrower • Real estate collateral provided by borrower to enhance payment prospects • Establishes priority and amount of lien on mortgage property • What is the date of the mortgage? • Where was it filed and when? • What was mortgaged (legal definition)? • Does borrower own the property being mortgage? • Releases (Development loans)

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