I’m not sure if I qualify.  My credit isn’t 800.  I’m scared to have my credit pulled.  As a Realtor, these statements are things that I hear frequently.  So many people are scared of the word “credit”.  Don’t be!  If it’s not perfect, it’s ok! If there’s work to do to improve it, that’s ok! Finding out where you stand is the first step towards home ownership.  Our theory is that everyone can be a homeowner and it’s our job to get you the dream home you deserve!

For most people, a home is the biggest, most important purchase you’ll ever make.

Ever wonder what a lender looks for? When determining your credit worthiness, a lender will consider your long term financial history. To do that, lenders look at your FICO score.

Guess what we have for you…. what makes up your FICO score:

• 35% of your score is determined by your payment history. This includes everything from credit card to retail account payments, as well as public records like bankruptcy.
• 30% of your score is determined by your amounts owed and your available credit. This isn’t just how much you owe, but what types of accounts and what percentage of available credit you’re using.
• 15% of your score is determined by the length of your credit history: How long your accounts have been open, and what kind of activity they’ve seen. Tip: Don’t close very old credit accounts with great payment history or ask your lender before doing so.
• 10% of your score is determined by your new credit. This refers to recent new accounts you’ve opened, and how long it’s been since previous credit inquiries.
• 10% of your score is determined by the types of credit used. This show a lender what amount of your credit is from credit cards, installment loans, mortgages, etc.

Having a great FICO score is extremely important for getting a great rate on your mortgage loan or for getting a mortgage loan at all.

Have more questions? Let me know! I love helping people achieve their dream of being a homeowner!

~Christen