What Credit Lines Are Included in Your Pre-Approval Evaluation? 

When applying for a pre-approval for a mortgage, lenders will evaluate various credit lines to determine your creditworthiness and ability to repay the loan. These credit lines typically include revolving lines of credit such as credit cards, personal loans, auto loans, student loans, and mortgages. However, there are some questions that arise when it comes to other expenses such as rent, utilities, and cellular phone bills.

Rent is typically not included as a credit line in your pre-approval evaluation because it is not considered a debt that is reported to credit bureaus. However, some lenders may ask for proof of your rental payments to ensure that you have a history of making timely payments. This can help to strengthen your overall application and show your ability to manage your finances responsibly.

Utilities, on the other hand, are also not considered a credit line in the traditional sense, as they are not a form of debt that is reported to credit bureaus. However, lenders may take into account your monthly utility payments as part of their overall assessment of your financial stability and ability to make consistent payments.

Similarly, cellular phone bills are not typically included as a credit line in your pre-approval evaluation. While these bills can impact your monthly expenses and cash flow, they are not seen as a form of debt that is typically reported to credit bureaus. However, making timely payments on your cellular phone bill can still reflect positively on your financial responsibility.

While rent, utilities, and cellular phone bills may not be included as traditional credit lines in your pre-approval evaluation, they can still play a role in showcasing your ability to manage your finances responsibly. It’s important to be diligent about making timely payments on all of your expenses to demonstrate your financial stability to lenders.

These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact us.