Spartan Commercial Mortgage Services is a Commercial Mortgage Company that specializes in Commercial Mortgage Finance Options. Whether it is for a rate and term loan, cash out refinance, or a commercial building purchase we can help. We cover most of the United States with a focus on the North East and East Coast. Spartan Commercial Mortgage offers Stated Income Commercial Mortgages as well as Conventional Commercial Mortgages. Furthermore, our rates are very competitive on our 30 year fixed commercial mortgages.
When a borrower is looking into commercial mortgage finance options they need to consider their credit score. A credit score not only dictates a rate that a borrower gets, but as well it will dictate if they qualify for the loan. A good rule of thumb is that the higher the credit score the lower the rate is. Furthermore, if a credit score is too low then the application may get turned down.
There are five areas that impact your Credit Score.
- Payment history (35%): First of all, payment history plays the biggest role in calculating your score. Borrowers that make their payments on time will have a higher credit score. As well, borrowers that have accounts in collections will have lower scores.
- Amounts owed (30%): Secondly, is the amounts owed category. If a borrower has a credit card max of $1,000.00 and owed $999.00 then the score will begin to drop. And, if a borrower owes $0 on that same credit card, then their score will go up. Essentially, the lower you keep your balance the higher your score will be.
- Length of credit history (15%): The more time you’ve spend building your credit history, the better your score.
- Credit mix (10%): Ideally, lenders want to see you can handle having a decent sampling of both revolving and installment credit. This shows you understand various types of financing. However, those with a younger credit history tend to have just a credit card or two. That’s OK because this category isn’t a huge factor in the formula.
- New credit (10%): Each time you apply for a new credit card or loan, your credit score goes down a little bit temporarily. The thinking here is that if you need to apply for new credit or a loan there’s always the chance you could be overextending yourself financially. If you make your payments on time (among other good habits), your score should be back where it was in no time.
Call today for a free consultation or click here to get pre-approved.
Thanks,
Michael Meyer
President Spartan Commercial Mortgage Services
mike@spartancommercialmortgage.com
(860) 876-0572