- Payment history - 35% or 297.5 points
- Amounts owed -30% or 255 points
- Length of credit history - 15% or 127.5 points
- New credit - 10% or 85 points
- Types of credit - 10% or 85 points
Length of credit history
Types of credit
- Business Ownership - you own your own business or % of someone else’s business
- Real Estate - primary residence, investment/rental properties, vacation home, etc.
- Paper/Liquid Funds - savings, checking, stocks, mutual funds -
- Commodities - oil, gas, gold silver, etc.
- Monies needed for closing costs (fees to the lender and third parties for things like appraisals, title insurance, settlement services, and so on)
- Monies needed for Pre-Paids (homeowners insurance, flood insurance, real estate taxes, etc.) and establishing escrow accounts for future payments
- Monies for Reserves- the money you still have left after closing. Monies that would be available, if a problem were to arise
How many of these did you already know? Understanding the intricacies of personal finance can give you a huge edge moving forward--especially as you look towards buying that first house!.
Any questions you may have about Real Estate finance terms, let us know and happy to talk you through it. Call us at 855-REC-6700 or email at email@example.com .