This is the fourth post in a blog series about how lenders interpret your credit score analysis as they make their decision on whether or not to approve you for a home loan. So far, we’ve covered Part 1, Part 2, and Part 3.
Your Credit Score Analysis – What do Your Accounts Look like?
Lenders like to see a credit history that is established. Every time you apply for, or open, a new credit account it goes on your credit history. A red flag for lenders is seeing a report where a borrower has opened a lot of new credit accounts in a short period of time. It brings into question, to the lender, why you would suddenly need to have so much credit. It also brings into question your ability to be able to pay these back on time, especially if they see that you have maxed out all of the limits on your cards. If you are trying to establish a new credit record or clean up your existing credit score analysis, its best to limit the amount of credit cards you apply for.
Read Part 5 of my blog series on how lenders evaluate your credit score analysis.
Are you thinking of buying a Northern Virginia home, but you’re not sure where to start? I’m a “no pressure” real estate agent who will work hard to help you understand the home buying process. Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com so I can go to work for you!