In this week’s edition of Mortgage Minutes, Academy Mortgage explains some of the components that make up a credit score, as well as how you can be viewed as a creditworthy borrower. Credit scores are an important aspect of being able to obtain a mortgage for your new home purchase in Atlanta. In addition, when you do secure a mortgage, only two things factor into the interest rate you will receive – your credit score and the loan-to-value ratio.
One positive aspect of a credit score is that the amount of money you have in the bank or how much money you make doesn’t affect your score. It’s important to remember that anyone, regardless of income or wealth, can have a high credit score.
When a mortgage lender looks at a potential borrower’s credit score, they look at a few major factors:
- Debt-to-credit ratio, or how much money a borrower owes on their credit accounts versus what their total available credit is.
- The total amount of debt a person currently has can determine if they are going to be able to afford their mortgage once that amount of debt is added to it.
It is also important to remember that the credit report that a lender pulls is different from the report a consumer gets from a credit reporting agency, so there may be some differentiation in scores. When a mortgage lender, such as Academy Mortgage, pulls a report, it comes from all three agencies at the same time, which is known as a tri-merge credit report. This gives the lender a better indication of what a borrower’s middle score will be and how creditworthy they are.
If you have questions about your credit score or would like to learn how you can raise your score, contact Academy Mortgage today by calling 404-713-8662404-713-8662 or visit www.AcademyMortgage.com.
Equal Housing Lender. (c)2013 Academy Mortgage License #3113. GA Lic. # 20505. This is not a commitment to lend. Academy Mortgage Atlanta: 5565 Glenridge Connector, Suite 400. Atlanta, GA 30342. Georgia Residential Mortgage Licensee.