Okay seems like now a days more people are having credit issues, they may have the income but not the credit to qualify for a new mortgage loan but they are still trying to buy a one of the Santa Maria homes for sale , in the Santa Maria real estate market even with their bad credit. Even though they may have the income to qualify its really tough to get someone approved and usually the whole credit thing seems to be some kind of mystery now this is not written in stone but should give you a guideline on what you can do to get your scores where they need to be and what you may be doing that is affecting you scores at the same time
There are five factors that comprise the credit score, and can help you on your way on how to buy a home. They are listed below in order of importance, just as an underwriter would look at the score:
Your payment history will have an impact of 35% on your credit score.There is a positive impact of paying debt on time and in full. A negative impact is created by late payments, judgments and charge-offs. Missing a high payment has an impact of higher severity than a low payment. The deliquencies that took place in the past couple of years outweigh the others.
The balances on your debts impact the determination of your credit score up to 30 %. This factor is the ratio of outstanding balance to available credit. Ideally, the consumer should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.
. This helps to note the amount of time since a particular credit line was established. A good borrower has great strength in this area.
Also the types of credit you have can affect your credit some help more than others and this can have an impact of about 10%. A mix of auto loans, credit cards, and mortgages is more positive than a concentration of debt from credit cards only.
Depending on how often you check your credit, it can be impacted by 10%. This quantifies the number of inquiries that have been made on a consumer's credit history within a six-month period. It can cost you from 2 to 50 points on your credit score for each hard inquiry, but 10 is the maximum number of inquiries that will reduce your score. In simpler terms, a borrower's credit score is not affected by 11 or more inquiries in a six month period.
Remember, a computer that's not taking any personal factors into consideration calculates these scores. A credit report is nothing but a snapshot of the borrower's credit profile. Depending on the person's activiities, you can see dramatic fluctuations in this during the course of the week. The borrower should be made aware of this when they enter into the loan process, and know that it's not in their best interest to go out on a shopping spree.This tells you what you are supposed to do if you have bad credit before you buy a home.
