Credit Scores

Your Credit Scores is one of the main ways that mortgage companies use to determine whether to approve your loan. The higher the credit score the better. There are 4 main factors for determining your credit score. They are past delinquency, length of credit, credit use, and mix of credit. The reason that they use past delinquency is because failing to make payments in the past makes it more likely that they will fail to make the payment again. If these failed payments are more recent they affect the score more. With the length of credit, the longer you have had credit the better that it is for your score. Mixture of credit is very important as well. The best combination would be that with revolving installment debt instead of just a credit card. Be sure that before you go in for a loan that you check that your credit score is correct because an estimated 4 out of 5 reports contain some sort of misinformation. If you still have late payments on your report be able to explain them to a lender. Here at Consumer Mortgage we accept many credit scores, so give us a call at 757-552-7000 or 800-882-0066. We will use are 30 years in the business to get you the mortgage to purchase your next home.