How Seriously Do Lenders Take Your Credit Score?

Published On: March 6, 2018|Categories: Blog|Tags: , |

How Seriously Do Lenders Take Your Credit Score

If you’re like most people buying a home for sale in Tampa Bay, you know that your credit score affects the interest rate you’ll be able to get on a mortgage loan.

But how serious is it, and how do credit scoring agenices even figure out what your credit score is?

How Seriously Do Lenders Take Your Credit Score?

Lenders look at your credit score to determine whether you’ll be able to repay a mortgage loan if they decide to give you one. They want to see that you have a solid credit history and that you have been dealing with revolving credit for a significant amount of time.

How Do Credit Scoring Agencies Figure Out Your Credit Score?

Most models are based on the same five categories: payment history, credit utilization, length of credit history, mix of accounts and new credit inquiries. Further, they’re each given a certain amount of weight, like this:

  • Payment history: 35%
  • Credit utliziation: 30%
  • Length of credit history: 15%
  • Mix of accounts: 10%
  • New credit inquiries: 10%

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