Credit has become a buzzword in recent years, but what does it really mean and how does it affect your home buying decisions?

Your credit score is one of the most influential elements in whether you are eligible to buy a home or not. It also plays a major role in what type of interest rate you are able to obtain, how much money you are able to borrow, and even how long lenders are willing to extend the repayment of the loan. This is not to say that it is the only factor in whether you can purchase a home, but it does play a major role.

Many elements of your past – such as employment, payment history on other types of loans or credit, and income history – are outlined in your credit report and are weighed into your credit score.

	35% PAST PAYMENT – How recent are the payments? How frequent are the payments? How severe are the late payments, if any?
	30% CREDIT UTILIZATION – What are the credit card balances compared to the credit limits?
	15% CREDIT HISTORY – How long has credit been established? Are there any derogatory accounts, judgements, collections, foreclosures, bankruptcies, etc.?
	10% TYPE OF CREDIT IN USE – Are the open accounts mortgage, installment, revolving, etc.?
	10% INQUIRIES – How recent and often has credit been inquired upon?

It’s not impossible to overcome poor credit. However, you will need an effective rebuilding strategy and we can help.

You may contact an Alexander Mortgage, LLC loan officer by calling 866-534-8850 between the hours of 9 a.m. and 5 p.m. CST, or email lucy@alexandermortgagellc.com at any time to have one of our loan officers contact you.