Understanding Credit Scores Their Impact On Real Estate Financing

Dated: 12/03/2019

Views: 112

Whether you are looking to buy or sell, your credit score can play a major role in your finance approval. By definition, your credit score is a number that reflects your credit worthiness at any given point in time. When a landlord, lender or credit card company is asked to loan money, they run a credit report to determine the amount of risk involved in investing in you, the applicant. Loan approval and the amount of money you are eligible to receive is one of the most critical elements of your real estate transaction - which makes it important to understand how credit scores work.

Your credit score is calculated based on a number of different factors. These factors are broken down below by percentage of consideration:

  • The number of new account and credit requests you've made (10%)

  • Your credit risk (10%)

  • The length of your credit history (15%)

  • Your total indebtedness (30%)

  • Your payment history or record of paying your bills on time (35%)

If you have questions about your credit score, real estate financing, or want to be approved for a mortgage, contact me.  I have a lender with a number of loan programs that can get you pre-qualified for a mortgage loan.  I am here to help!


Jerri Sutherland, REALTOR

Realty Executives Advantage

Jerri@AdvantageSold.com

Mobile: (281) 796-0153

 

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