Blog

RSS

How's Your Credit?

Are you planning on buying your first home? Or are you moving and will be refinancing your mortgage? We met with one of our mobile mortgage specialists recently and she gave us some tips on improving your chances of getting a good mortgage. We also checked online and found some advice, so here's a compilation of top mistakes that hurt your credit score.

1. Paying bills late. Even paying just one day late can hurt your score. Mark your calendar or set up an automatic payment plan with your bank.

2. Not checking your credit reports. You really should try to do this once a year. Apparently there can be some mistakes on there or unfortunately, identity fraud, so it's prudent to do this. Check out www.equifax.ca or www.transunion.ca for more info.

3. Maxing out your credit cards. If you do that, it shows that you are using too much of your available credit. Try to give that credit card a break and use another one... but try to keep it at less than half of your available credit.

4. Using cash over credit. If you use cash, you can't show your lenders how well you handle debt. So then you don't have much of a credit history.

5. Applying for extra cards. Not a good idea as it may look like you are desperate for credit. Closing credit cards on the other hand is not a good sign either. You are ultimately shrinking your amount you are allowed to borrow. However, if you are concerned about identity theft, annual fees,etc, then by all means close the account.

If you find out that your credit score isn't very good, some mortgage specialists will work with you to improve your score. It may take 6 months to a year, but that is well worth it to get your financing in order to ultimately get the home you want.

If you have any questions about applying for a mortgage to buy a home or finding a good mortgage broker, feel free to contact us info@holmesteam.ca.

* Please note, this is general information only and should not be taken as specialist advice. If you need more specific information, contact your mortgage specialist/broker.


Cheers,

Greg & Liz

Comments:

No comments

Post Your Comment:

Your email will not be published
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.