A credit score can range anywhere between 300 - 850 and is comprised of 5 different categories. The information below shows what factors are used to calculate your credit score, and the actions that affect it.
Types of Credit - 10%: This looks at what types of credit you have.
New Credit - 10%:
New applications for credit might cause you to be risky and lower your score.
Length of History - 15%:
How long your accounts have been open. If you are going to close an account, DO NOT close the oldest.
Payment History - 35%:
Making sure that you have your payments in full and on time.
Debt Utilization - 30%:
How active EACH of your accounts are will affect this portion of your score.
Immediately inform us of any change in your employment. Income & assets status
Continue living at your current residence
Continue making your mortgage or rent payments
Keep working at your current employer
Stay current on all existing accounts
Explain any credit blemishes and credit inquiries
Research and choose a homeowners insurance company and program
Make any major purchases (i.e. car, appliances, furniture, or start home improvement)
Apply for new credit or loans
Pay off any charge off accounts, collections, loans, credit cards or consolidate your debt
Close any credit card accounts, max out or over charge on your credit accounts
Change bank accounts or transfer balances from one account to another
Change your sources of closing funds
Deposit large amounts of cash into your bank account without proper documentation
Items that may be requested during your home loan process
Valid photo identification
Bank/asset statements for the last two months on all checking, savings, stock, mutual funds, IRA, or other liquid assets you would like on your loan application
Pay stubs for the last 30 days
W-2 forms for the past two years
Federal tax returns for the past two years, including all schedules
If self-employed or you own more than 25% of a business, copies of business tax returns for the past two years, including all schedules. Provide all K-1’s to prove ownership interest in any entity.
For other real estate owned, we need loan information, monthly payment, and any rent collected
Home owners insurance contact info
Landlord/mortgage company information for past two years
Certificate of Eligibility and DD-214 or Statement of Service, if applying for a VA loan
Bankruptcy or property short-sale/foreclosure information
A copy of the settlement statement if you sold property in the last three months
Child support payment info, copy of divorce decree and/or separation agreement, if applicable
A copy of the signed real estate contract, if you’ve already made an offer on a home
Resident alien card, front and back, if applicable
Additional Documentation for a Refinance
Current mortgage statement for property you want to refinance
Current second mortgage or equity line statement for property you want to refinance
Estimated value of your home
Recent annual Homeowners insurance policy statement for the property you want to refinance
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