Credit Scores Among Online Mortgage Applicants On the Rise

The average credit score among online mortgage shoppers is rising and is well above the overall national average, according to a recent study by ""MortgageMarvel.com."":http://www.mortgagemarvel.com/

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In 2012, the average FICO score for online mortgage shoppers was 734, a four-point increase from 2011. Last year's average was also 70 points above the overall national average credit score of 664, according to MortgageMarvel.com's findings.

The company expects this trend to continue throughout this year, in part due to opportunities on the job front and rising incomes.

MortgageMarvel.com conducted its analysis by reviewing more than 450,000 mortgage applications submitted on Mortgagebot--owner of MortgageMarvel.com--in 2012.

For the third consecutive year, California applicants scored higher than all other states. The average FICO score for Mortgagebot applicants from California was 755.

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Last year was also the third consecutive year for Mississippi applicants to rank lowest in MortgageMarvel.com's study. The average credit score for Mississippi applicants was 689.

While Mississippi's average is 45 points below the national average for online mortgage applicants, MortgageMarvel.com's COO, Rick Allen, pointed out a score of 689 ""is still considered to be a good credit score.""

""If you're shopping for a first home, a score in this range is certainly considered to be good, and it will get you a reasonably priced mortgage,"" he said.

In fact, Allen advised borrowers with even lower credit scores to feel somewhat confident, pointing out some types of mortgage loans, such as FHA and VA loans, have lower credit requirements than traditional loan types.

While California topped MortgageMarvel.com's list of highest ranking states with an average credit score of 755, Hawaii followed close behind with an average score of 754,

Oregon ranked third with an average score of 751, and Connecticut and Wisconsin rounded out the top five with scores of 747 and 746, respectively.

The list of bottom five states was dominated by Southern states, starting with Mississippi with an average credit score of 689.

Arkansas (693), Louisiana (698), and West Virginia (702), ranked next, followed by Oklahoma with an average credit score of 704 among online mortgage applicants.