Why Your Credit is So Important
We advise all future Home Buyers to get Pre-Approved for your home purchase, even if you can't buy today, find out what you need to do, so you can buy later! Pre-Approvals are good for 120 days, if you need to save money, find out how much you need. If you have credit problems, find out what you need to "fix". Fill out an application today so we can get started!
Lenders evaluate your request for a mortgage in light of the risk they take by funding your mortgage. In particular, lenders look at these aspects of your credit record;
- Delinquent Payments -
If you failed to make payments in the past, or if you have been late making payments, lenders expect you to act similarly in the future.
- Past Credit Usage -
If you are close to the limit on a credit card, you are considered a greater risk than someone who has lots of credit available.
- How Long You Have Used Credit -
The most-used scoring system assumes that you are a better risk if you have been using credit wisely for a number of years.
- How Often You Apply for New Credit -
It's not a good signal if you have applied for many new credit cards or other loans within a short period of time. A lender evaluating your credit worthiness does not like to see a lot of new indebtedness right before you apply for a mortgage.
Other Factors Considered by a Lender:
- The stability of your job and the price of the house are major factors in the equation. Your ability to make your down payment and cover closing costs is also evaluated. If your credit score and otehr aspects of your file meet or exceed what the lender expects, loan approval can be almost automatic, considerably speeding up the closing process.
Do not let any of the above intimidate you! We can council and walk you through how to fix minor and major issues on your credit. We stand by our promise to do the best we can to get you into the home of your dreams!