Importance of Credit
Many potential borrowers fail to recognize the importance of credit when it comes to securing a mortgage for your home. The underlying principle to remember is that with most lenders:
In other words, your history with other creditors and your ability to repay your past debts is an indicator to a potential lender of how likely you are to repay your mortgage debt. Your credit score is a number that lenders use to determine exactly where your credit stands.
Your credit score is reported by three major credit bureaus. In the mortgage industry, a different model is used to determine your score so even if you have terrific credit elsewhere, it is still important to look at your mortgage credit score.
To understand where this value comes from, it is important to understand the key factors that determine your score.
If you aren’t sure your likelihood of qualifying for a mortgage program, take the time to talk to an Alera mortgage consultant about your homebuying goals. With the variety of loan programs we offer, we are able to help many potential borrowers who thought they could not purchase a home.