fbpx
Did you know this about your credit?
Credit scores are used to assess risk and determine whether a borrower is approved or declined for a mortgage, credit card or some other type of credit. The score is a numerical value ranging from a low of zero to a high of 850 or 900 depending on the credit bureau. The higher the score, […]
Did you know this about your credit?
Credit scores are used to assess risk and determine whether a borrower is approved or declined for a mortgage, credit card or some other type of credit. The score is a numerical value ranging from a low of zero to a high of 850 or 900 depending on the credit bureau. The higher the score, […]

6d06d4ce-d0e5-453f-8736-4e8a9c87b24e.jpg

Credit scores are used to assess risk and determine whether a borrower is approved or declined for a mortgage, credit card or some other type of credit. The score is a numerical value ranging from a low of zero to a high of 850 or 900 depending on the credit bureau.

The higher the score, the more likely the lender will be repaid in a timely manner.

  1. A higher credit score could help you get a lower interest rate
  2. You can get a free credit report from all three major bureaus at www.AnnualCreditReport.com.
  3. Your credit score doesn’t have to be perfect to get a loan … most lenders want buyers to have a minimum of 620 but FHA will consider as low as 500
  4. Credit utilization, the percentage of credit used compared to what is available, should be kept below 30%; amounts higher could negatively affect your credit score.
  5. There is a difference between a soft and a hard credit pull. The former doesn’t hurt your score, but the latter can lower it a few points. Try to avoid multiple hard inquiries.
  6. Credit cards, bank loans, car loans and home loans are considered "good credit" and a mixture of different types is helpful compared to only a car loan.
  7. Opening new credit accounts after you apply for a mortgage can hurt or even prevent you from being approved on the mortgage.

There are five components to making up a credit score. 35% of the weighted average is determined by payment history like paying on time. The next highest item is the amount owed and counts for 30% of your score. This component deals with credit utilization which is expressed as a percentage of what you owe divided by what is available.

The length of time you have had credit established accounts for 15% of the score. New credit and the types of credit accounts are weighted at 10% each. Opening several accounts in a relatively close period will negatively affect your score. While it isn’t necessary to have all types of credit like credit cards, installment loans, finance company accounts and mortgage loans, the types of credit in the mix are evaluated.

If you need help increasing your score, a trusted lender that provides your pre-approval can also make suggestions that would improve your credit. Contact your real estate professional to get a personal recommendation of a trusted mortgage lender.

LIST OF BLOGS

Home Flipping Tips:: Find A Awesome Real Estate Agent

Home Flipping Tips:: Find A Awesome Real Estate Agent When you turn a home, here is an excellent pointer for conserving cash. You require to speak with representatives and make sure they are the best representative for the task. I think that a group is the finest...

Get All Your Home Buying Questions Answered

Purchasing property is something you do not wish to ignore. When you make your purchase you feel comfy about it, you desire to make sure you have as much details about genuine estate so. This post is here so you can find out some suggestions that can assist you with...

Who Else Wants To Buy Rental Property With Zero Down?

Who Else Wants To Buy Rental Property With Zero Down? Who would have ever thought that there would be a mortgage that would let you purchase rental residential or commercial property with no down? It is a truth. When purchasing rental home with absolutely nothing...

Looking For Rental Properties-Which Types to Avoid

Searching For Rental Properties-Which Types to Avoid When you are going shopping around for rental financial investment home it must be kept in mind that simply since you discover a residential or commercial property with a great cost; that does not always indicate...

Concepts To Make Selling Your Real Estate Easy

Here, you can discover all sorts of pointers and techniques on making the most out of the realty sale you are taking on. Your genuine estate sale will not be the finest sale that it might potentially be if you do not understand these tricks. When you follow these...

All Your Home Buying Questions Answered Here (3 )

All Your Home Buying Questions Answered Here Purchasing property can be a dangerous possibility if you do not understand what you are doing, and if you have unbelievable expectations. When is a great time to purchase and when you ought to wait it out for a much better...

Tips for Locating the Right Rental Property

Tips for Locating the Right Rental Property The choice to purchase rental home is a crucial one. The initial step in starting is to select the best residential or commercial property which will produce an enough quantity of earnings for you while likewise needing as...

Offering Some secret and a home Terms To Know

Offering Some secret and a home Terms To Know Reliable home selling in North America needs property understand how, especially when you decide to offer your home FSBO. Here are some crucial terms that you must understand A 1031 Exchange is a tax element of the...

Real Estate For Dummies Your Guide To Buying Real Estate

Real Estate For Dummies Your Guide To Buying Real Estate Anybody that remains in the marketplace to purchase a brand-new home or has actually ever bought a home understands for how long of a procedure this can truly be. It is time consuming, and difficult, though it...

Comprehending The World Of Real Estate Selling (3 )

Comprehending The World Of Real Estate Selling Lots of resident end up being exasperated with the time and energy that it requires to offer a home. The majority of people wish to see outcomes rapidly so that they can proceed to the next phase of their lives. This...

RECENT POSTS

ABOUT  TWENTY
THREE HOMES

The Twenty Three Homes are one of the premiere real estate groups locally, nationally and internationally, specifically dealing with high-end properties and exclusive clientele. Partner with Keller Williams Twenty Three Homes are full service real estate experts whose clients benefit from the custom tailored, hands on service while receiving all the exclusive amenities and resources of one of the most established and respected firms in the business.

GET IN TOUCH