Take Me To Post Comment Form What Lenders look for when evaluating a Borrower’s Credit

With changes in the real estate market, there too have been many changes to the mortgage industry. The time has come again for future borrowers to take responsibility for their own actions. In the past, almost anyone could get a loan…even if they had “blemishes on their credit. This is not necessarily the case now but there are still many programs and options available. Do not be discouraged, now is a great time to purchase, and there is financing available. It may take more time and patience, but it can happen. The mortgage process is not easy to understand, but find a local mortgage lender/broker and they will be able to answer any questions you may have. Remember that in borrowing for a mortgage you must take into consideration more than just good credit.

There are many misconceptions in mortgage lending or purchasing home loans. Please don’t fall for the myths or “I heard scenarios. If in doubt, educate yourself. Understanding your creditworthiness can help you manage your credit health by lowering your credit risk and raising your score over time. There are five main components a mortgage lender/broker looks for when evaluating a borrower’s credit: Payment history, amount owed on each account, length of credit history, new credit, and types of credit in use.

There are three credit bureaus that collect information about the amount of debt you have and whether you pay your bills on time. Each bureau will compile a score for you. A credit score is a number that summarizes your credit risk. It is based upon a snapshot of your credit report. Credit that is available as well as the terms (interest and length of time) are influenced by your credit score. Lower scores lead to the higher rates and shorter terms. In the long run, it costs you more…not only late fees but rates as well. There are no loop holes to great credit…if there were, we’d all have great credit. The name of the game is showing financial responsibility and that you are a safe credit risk.

Statesboro Board Of Realtors