How credit can affect your ability to obtain a loan?
Your credit score and credit history play a major role in determining if you will qualify for a home. In most cases, higher credit scores equal a lower interest rate and easier debt-to-income guidelines. Lower credit scores equal a higher interest rate and more restrictive debt-to-income guidelines.
Credit reports will be pulled from all three major reporting bureaus; Experian, TransUnion and Equifax. Each of the three bureaus, collects data from your lenders about your history of borrowing and paying back credit. They compile that information into your credit report, which any lender can access whenever you apply for a loan.
The Fair Isaac Corp. is the major producer of credit scores. They take the information from those three credit reports (Experian, TransUnion and Equifax), apply their own proprietary formula and distill three credit scores into one final score ranging from 300 to 850.
The credit report tells us:
How timely you pay your bills.
The number of credit accounts you have.
Your payment history with each creditor.
The age of each account.
How much you currently owe in credit related debts.
Your credit utilization
If you have any derogatory items such as charge offs, collections, judgments, liens, bankruptcies and/or foreclosures.
Are you ready to move forward with a purchase or refinance? Please give us a call at 888-810-1459 and let us help you secure financing for the purchase of a new home or save you money on the refinance of your existing home. Be sure to ask your loan officer about our closing costs incentives and our low rate guarantee!
Disclaimer: The information contained in this article has been prepared by an independent third party and is distributed to consumers for educational purposes only. The information is considered reliable but not guaranteed to be accurate. The opinions expressed in this article do not represent the opinions of Skyline Home Loans. Please consult with a licensed loan officer for expert advice regarding financing or refinancing. For advice regarding your credit report and credit scores contact a licensed credit repair specialist.