Lenders want to see the borrower has solid history of paying debt on time and in a consistent way. That’s why they refer to a credit report. It is important to note that when buying a home, some banks accept a minimum score of 620 (depending on the loan program).
I work with a lot of lenders in Virginia Beach and Norfolk and need to educate them on credit scores.
Lenders look at the entire financial history, which includes types of accounts, any derogatory activities like late payments, collections and other public judgement. Public judgments must be paid off and released prior to closing the home loan.
Your scores is broken down into these parts:
Payment History (35%)
Amount Owed (30%)
Length of Credit History (15%)
New Credit (10%)
Types of Credit (10%)
Visit MyFICO to learn more.
Specific questions about credit scores in Virginia Beach? Let me know!
Featured photo: Simon Cunningham (Flickr)