The Big 5 and Your Credit

Loving that buyers can start off the new year with mortgage rates still in the 3’s AND for First-Time Home Buyers, the 3% down payment loans are back – yay!!

Low down payments, low interest rates… now what do you need to take advantage of both?

First, you’ll want a great buyer’s agent, like myself of course 🙂  I will help you find a home that suits your lifestyle & negotiate terms that fit your budget.

You will also need a trusted mortgage officer to help you secure a mortgage with a lender.  And, finally, lenders are going to want to see good credit to give you the most flexibility with down payments and the best rates. Now, what goes into a good credit score?

Click this link to  The 5 Biggest Factors Affecting Your Credit  as explained by Amy Fontinelle on Investopedia.com (which, by the way, is a site full of understandable information for consumers).

1. Payment History (35%)
2. Amounts Owed (30%)
3. Length of Credit (15%)
4. New Credit (10%)
5. Types of Credit in Use (10%)

Your credit score reflects the amount of risk a lender may be taking when they loan money to you.  It indicates how responsible you have been in taking out credit and paying back those loans and bills.  If you have not shown stable repayment of debt, expect a low credit score (and expect that banks may not want to loan you hundreds of thousands of dollars for a new home or that they may charge you much more to borrow from them).  On the flip side, if you have taken out credit and managed it well, your score will be higher rewarding you with better rates and more options for loans. This article takes only a few minutes to read, but is great information for years to come whether working to maintain your credit or rebuild it.

Jen McMorran, Realtor
jen.mcmorran@verizon.net
508-930-5259
First Time Home Buyers
Existing Home Sales
New Construction
Antique Homes

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