This is the fifth post in a blog series on how lenders go over your credit score analysis before you purchase a Northern Virginia home. So far, we’ve covered Part 1, Part 2, Part 3, and Part 4.
Credit Score Analysis – What Types of Accounts do You Have?
It isn't just the amount of debt you have, but the types of debt that are looked at by lenders. Credit comes in many forms; credit cards, student loans, auto loans, mortgages, personal loans, and store credit accounts. Lenders like to see some variety on your credit score analysis because it tells them that the borrower has experience with a variety of credit resources and uses them responsibly.
These are just the main criteria that are taken into account by lenders when you apply for credit. When you are applying for a loan that isn't related to real estate, lenders may also have their own set of guidelines and scoring methods that they will use. An example would be a major company that has several individual store chains, such as Shoppers Direct who runs Very, K&Co, Littlewoods and ISME. They may look at whether or not you have opened a credit account in any of their other chains before considering how much credit to allow you.
Read Part 6 of my blog series on how loan officers evaluate your credit score analysis.
Are you considering buying a home in Northern Virginia? It’s important to work with an agent who does a lot of transactions on a regular basis and who has a lot of experience negotiating real estate contracts. With over 30 transactions and over $10 Million in sales volume in the last year alone, I have the experience to get you the best deal possible on your home purchase. Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com so I can go to work for you!