Understanding Credit Scores Their Impact On Real Estate Financing

Dated: December 3 2019

Views: 123

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

 

Blog author image

Texas Property Chicks Team

Who are these Chicks? A group of woman who knows that we can offer more together than separately. In this small diversified group of not only realtors, some are also tax preparers, pastors, invest....

Latest Blog Posts

Its Not Just About The Price Of The Home

It’s Not Just About the Price of the HomeWhen most of us begin searching for a home, we naturally start by looking at the price. It’s important, however, to closely consider what else impacts

Read More

Three Ways To Win In A Bidding War

Three Ways to Win in a Bidding WarWith so few houses for sale today and low mortgage rates driving buyer activity, bidding wars are becoming more common. Multiple-offer scenarios are

Read More

The Cost Of Renting Vs Buying A Home

The Cost of Renting Vs. Buying a Home Some Highlights The percentage of income needed to afford a median-priced home today is declining, while that for renting is on the rise.

Read More

Summer Is The New Spring For Real Estate

Summer is the New Spring for Real Estate Some Highlights The health crisis slowed the market this spring, so buyers are jumping back into the market to make their moves this summer. Check

Read More