What to know about credit scores
If you are like many American’s this spring and planning on shopping for a San Antonio custom home
, you are probably starting too or planning on shopping for a home loan. If this is your first time purchasing a new home, you may be wondering what all goes into how you qualify for a loan. Weston Dean Custom Homes has a breakdown of what all goes into qualifying you for a home loan, beyond just your credit score.
When lenders look at your information to see if and how much you will qualify for a home loan, your credit score is just one part of what they look at when making a determination for what you can afford. Traditionally, your credit score is what gets the most attention in the news or in advertising, making people think it is the end all be all for what they can afford.
However, some financial experts say that the role of credit scores may be overblown. Although your credit score will be a useful tool for lenders, it wont be the only tool they use. Other things lenders look at is your housing history, credit decisions, and even your social media presence.
Mortgage and subprime borrows may be subject to even greater scrutiny. This doesn’t mean your credit score isn’t important anymore, it just means that based on the type of lender you choose, it will vary how much they take your credit score into account. If your score is greater than 750, the decision will be made primarily on your credit score.
Each lender will have their own criteria, but the most common things that you can expect to be looked at are your proof of income, investment statements, employment history, housing history, debt-to-income ratio and recent payment history.
People with lower scores may find lenders asking them for more documentation, which isn’t a bad sign. It typically means they are looking for good things in order to help you out on your home loan offerings. Mortgage lenders have more stringent requirements and other than your credit score, they look at details regarding your income and assets, to determine if the borrower has the means to pay off a loan in the long term.
Knowing that there are options out there for home loans can help shed some light as you begin shopping for your lender to find the perfect deal for you to purchase your perfect new home.
Weston Dean Custom Homes can help you design your dream custom home that fits all your wants and needs in one. Contact us today to see how we can help your home searching process to make it as easy as possible for you.
Weston Dean Homes is a San Antonio area custom home builder. For more information call (210) 408-910