Obtaining a good credit score is very important for those applying for housing loans.

Since getting a good credit score is very important for mortgage loan applicants, here are some of the characteristics of a good credit score from the lender’s point of view.

Whenever you feel you need more information, you can find answers to your questions by visiting the  real estate timeline page  and see each step of buying real estate!

Four credit attributes starting with the letter c

Initial capital: Initial capital is the amount of money advanced to buy a house. The higher the first payment, the lower the loan amount and monthly installments.

Qudra: Qudra is monthly and established income, in addition to job history and income. Usually, lenders want to know that you have been working for a firm for at least two years.

Credit History: The credit history shows the amount of credit you have used and how to pay your bills. Explain this situation that your expenses do not exceed your income and that you pay your bills on time and continuously.

Guarantees: Guarantees are the official value of the property you are looking for. If the property is reserved for you, God forbid, the borrower will own it, so he wants to know what the real value of the property is.

Is your credit score good enough?

Below is the list of credit history, but we have covered other problems in subsequent articles.

Many lenders use FICO to review the combined information of all credit bureaus. Based on your FICO score, our lenders will determine if you are a good candidate for a home loan. Here are the top 5 factors that have a big impact on your FICO score.

payment date

Do you pay your bills on time? This will have a big impact on your credit score.
Are you often late in paying your bills? If I manage to settle all your accounts, your grades will improve. Try to pay all your fees on time.
Have you filed for bankruptcy or are you involved in lawsuits, foreclosures, or anything else? If it happened recently, it will have a big impact on your grades.

Debt volume

Do you have a lot of debt? If the amount is high, it will cause anxiety for the borrowers.
What is the percentage of monthly income that is spent on loans? Al-Muzardoon do not like that this number is high.
Is your credit card balance high? I prefer to get a credit card with a smaller amount.


Length of credit history

Since when did you open your account? And the longer this period is, the better. The modernity of the calculations is the reduction of some points.
Since when are you using these accounts? Having many inactive accounts will negatively affect your credit score.

New credit

Have you recently opened a new credit account? Opening many accounts in a short period of time has a negative effect on the credit score.

Total credits

How many types of credit accounts do you have? If you can manage different types of credit well, such as student loans, car loans, etc., your grades will increase.

What does the FICO score mean?

350-599: Maybe you can’t get a real estate loan.
600-680: How long you can get a real estate mortgage with higher interest and installments.
680 and above: You may be able to get a mortgage with reasonable interest and installments.
750 and above: the best interest rates and the lowest installments included.
Note that the credit score is only an assessment of the probability of risk and does not mean the destruction of your character. Also, this number is not fixed and can be appreciated. Over time, you can improve your bad grades or even destroy your very good grades. If you have a low score, try to get credit before applying for a mortgage. Remember that even the lowest interest rate of half a percent can leave thousands of dollars in your pocket.

In the following article, the age of the method of credit improvement is mentioned.

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