*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Whether you love it, or hate it, credit history tells the financial world a lot about a person. Those 550 numbers that range between 300 and 850, tell banks and lenders the risk factor that a person carries.
The trust that banks and lenders have in you, could be the difference between you getting into the home of your dreams, and letting it slip through your fingers.
Lets try and help this make more sense with a pop culture reference.
People are getting excited about the movies Top Gun, and its newest sequel Top Gun Maverick.
In the two movies, Pete "Maverick" Mitchell is notorious for being a wild card. He's someone who pushes against the grain and often finds himself in the office of his Admiral getting yelled at for leaving his wingman or disobeying rules. This doesn't mean that Maverick is a bad pilot, this doesn't mean that Maverick is a bad friend, or even a bad asset to the team. In fact, Maverick is one of the best pilots there is! Due to his track record though, this just means that he has a shorter leash than most when it comes to the trust his leaders put in him.
Now, let's look at the villain turned protagonist, Tom "Iceman" Kazansky. Iceman is known as the best pilot in the Top Gun program during the original 1986 film. He is known as an intense rule follower who hardly makes mistakes of his own, and thrives when he is put under pressure. His teammates would follow him into the fiery depths of war because they trust that he'll help them make it out alive. Eventually, Iceman is trusted enough by his peers and becomes the Admiral at the Top Gun program, helping other young pilots become some of the best warriors in the world.
If you were in the Navy, and Maverick and Iceman were named to your team, there's a good chance that you'd be excited to go to battle with both of them. Both are among the best pilots in the world and have a track record of being assets to the teams they are on. When evaluating these two individuals though, who would you want to keep a closer eye on? Who do you feel like you could trust more?
It's the same Idea with banks.
Sometimes a bank will look at your profile and give you all of the money that you're requesting because they can trust your previous credit history enough to know that there's a very good chance you'll pay them back. (Iceman)
Other times, banks may have stipulations such as a higher interest rates, or a shorter period of time to pay them back, because although they trust you, the lenders would rather be safe than sorry. (Maverick)
Hopefully this last scenario doesn't happen often, but every now and again, banks will tell a borrower "no" because they aren't able to trust them due to their past credit history.
Mortgage loan officers look at credit history very closely when qualifying a borrower. Good credit could be the difference between getting enough money to purchase your future home, and having another borrower be chosen over you.
It is extremely important to have an idea of where your credit score is at, and make adjustments if necessary, to show lenders that you are someone that can be trusted.
Contact me today and let's chat about your credit, and how we can help you get into the home of your dreams.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
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