Esther Lee, Caliber Home Loans Regional Builder Manager, joins Atlanta’s Best New Homes TV to explain the importance of credit scores and what Caliber Home Loans accepts in terms of credit applications.
A credit score, as explained by Lee, is simply a statistical measure for how likely a borrower is to pay back a debt, which is important to be aware of because a home mortgage is one of the largest loans a person may owe in their life.
Three credit bureaus report credit scores commonly known as TransUnion, Experian and Equifax. When Caliber Home Loans runs a credit check to approve a home mortgage, they receive results from all three bureaus.
According to Lee, Caliber Home Loans uses the middle ranked score rather than the higher or lower score for qualification. Credit scores can range from low or poor starting at 300 to a high or excellent score at 850. If someone has no credit history whatsoever, that person may not have a ranked credit score at all.
To develop a credit score, someone would need at least one open and active trade line that has a reporting cycle for a minimum of six months.
For more information, visit CaliberHomeLoans.com or contact Jennifer Clancy at 770-866-3892 and let Caliber guide you home.