If you’re trying to get a Brevard County mortgage, you’ll need to prove that you can handle it by showing a solid credit rating. Typically, mortgage lenders pull credit reports from the three main credit reporting bureaus – Experian, TransUnion, and Equifax – and use the middle score as your qualifying credit score. This is called a “tri-merge credit report,” and it’s the traditional way to provide a very clear picture of your creditworthiness.

But what happens if you don’t have much traditional credit? Traditional credit includes credit cards, bank loans, auto finance companies, and mortgage lenders, all of which report your payments to the three main credit bureaus. However, many people have non-traditional credit, which doesn’t show up on the traditional credit reports. And that means your Brevard County mortgage application could be questioned.

What types of non-traditional credit might you have, and how can you get your mortgage lender to consider it? One way is to document your payment histories.

Here are some tips:

Rental Payments

Often, single-family rental homes are owned by individuals who don’t report rent payments to the credit bureaus. If you’re in that situation, pay your rent by check, and keep at least 12 months of canceled checks that you can show to lenders. If you haven’t done that, check with your bank. You can obtain copies of canceled checks if you need them, and if you use online banking, you may be able to access them easily at no charge. If you pay with cash, get a receipt (which you should do anyway) and keep at least one year’s worth.

Utility Bills

While credit reports are increasingly including power, cable, and telephone payment histories, it’s a relatively new development. Again, keep one year of canceled checks to prove you’ve made all your payments, or check with your bank to verify how you can document your payments. Document cash payments with receipts.

Savings Deposits

A pattern of regular saving can also be considered when you’re applying for credit. Periodic wage deposits into a savings account can be documented to prove financial responsibility.

Check Your Credit

You can request a free credit report at www.annualcreditreport.com, and check it to see how your credit stacks up. Make sure you dispute any errors and omissions with the credit reporting agencies.

If you’ve got a “thin” credit file, check with your Brevard County mortgage lender, and ask if you can provide non-traditional credit documentation. At Embrace Home Loans, we’re experts in mortgage lending. We can help you review your credit and determine if you can qualify for a mortgage with non-traditional credit. Call us today at 407-733-6425.