This ensures that you are paying fair market value for your home. An appraisal is often required in order to underwrite and close on your new home. Your annual percentage rate includes both your interest rate and additional closing costs or prepaid finance charges you may pay - such as prepaid interest. Your APR represents the total cost of your loan on a yearly basis, disclosed as a percentage rate. Your APR will usually be slightly higher than your Actual Rate because it includes some of your costs required to close.
Credit scoring is a scientific way of assessing how likely a borrower is to pay back a loan.
A credit bureau score is based on the data available in the borrower's credit report. It is not a measure of a borrower's income or assets. The types of credit information used in the credit bureau scorecards are typically the same item an underwriter would used to make a credit decision. Outstanding Debt - number of open tradelines with balances recently reported. Average balances across all trade lines.