Credit Check
Credit check.
Credit Check
The credit check is an essential part of the home buying process that can feel very intimidating for many. In this video we talk about the credit check process and how to get ready for it.
Credit Scores
Credit scores are reviewed for mortgage qualification. Best is 740 or above although there are loan programs that go as low as 580 in some cases. If you haven’t reviewed your credit history recently, You can get a free copy of your credit report online, but it costs money to receive the scores: annualcreditreport.com. For mortgage purposes, all 3 scores are reviewed Experian, Transunion, Equifax.
Credit Score Scale (From Framework Homebuyer Course):
350 - 599 - You probably won't qualify for a mortgage.
600 - 680 - You might qualify but will probably pay a higher interest rate and higher fees.
680 - plus - You’re likely to qualify, and with a good interest rate and standard fees.
740 - plus - You should get the best interest rates and the lowest fees.
What Impacts Scores?
35% payment history
30% amounts owed
15% length of credit history
10% new credit
10% credit mix