How Much Credit Affects Loan Approval

Buying a home can be a daunting task, especially when interest rates are high and there's an influx of buyers in the market. However, there are things you can do to prepare yourself for the home buying process, while you wait for interest rates to go down. With our "Get Ready Program" you can take proactive steps to improve your credit, obtain a down payment fund, and be up to date on the current housing market facts, you can position yourself to get ahead of the competition and find your dream home. In this campaign, we'll explore some of the key steps you can take to achieve your homeownership goals and be ahead of the next rush of homebuyers.

Ashley Parker sat down with Mario Escobedo from the Escobedo Team at Motto Mortgage One to chat about what affects your credit and how it is reported to the bureaus.

Credit plays a huge part in getting a loan to buy a home, so it's important to know what loan officers look for when it comes to your credit:

Ashley & Mario talk about the second most important part of the credit pie: the amount that you owe that's being reported the credit bureaus.

Mario gives a suggested credit card utilization rate for when you're preparing to buy a home.

About 65% of your credit score is dictated by two things: 1️⃣ credit utilization 2️⃣ payment history