Give Yourself some Credit

It’s essential to know your credit score before you start house hunting.

The home of your dreams has finally hit the market!  You anticipate it’ll be easy to get a mortgage but if your credit’s not in great shape, your dream home may remain just a dream.

It’s important to have a clear understanding of your credit score ahead of time as it’ll make you more attractive to financial institutions which means you’ll enjoy better rates and terms that over time can save you thousands!  Here are a few things to consider:

  1. Clean It Up – If there’s a blemish or two on your report, try to clean it up ahead of time.
  2. Credit Balance – It’s important to show you’re responsible so don’t continuously max out your cards.
  3. Consistency – Lenders look for a long track record of consistent payments.  Time is all that will help so get started today!
  4. Payment History – It may not be a big deal if you’ve missed the odd payment but if you’re consistently late, it’ll raise a red flag.
  5. Number of Applications – The number of times you’ve applied for credit can affect your rating so don’t apply for credit unless you plan on using it.
  6. How Much You Owe – Lenders don’t want to lend to someone with a whack of financial obligations so try to pay off smaller debts and avoid any big credit charges such as a car purchase before buying a home.

Knowledge is power so find out where you stand ahead of time, even if you don’t think there’s an issue.  If you know your credit’s in need of repair, start fixing it right away as a good credit rating will entitle you to preferred rates which can amount to thousands in interest savings.  Please don’t hesitate to get in touch for more information on how to perfect your credit rating.