THE IMPORTANCE OF GOOD CREDIT
Unless you are one of the lucky few who have won the lottery, have a rich uncle or have saved nearly every penny you have ever earned, you are probably going to need to get a mortgage to buy your new home.
For the vast majority of people, the fact is that without a good credit history, you will not be able to qualify for financing, no matter how much money you have as a down payment or how long you have been at your well-paying job.
Whether you intend to apply for a mortgage with your bank or through a mortgage broker, the basic tests of creditworthiness that lending institutions use are pretty much the same and they all boil down to a number - the number of your credit score.
If your credit score is too low, you will be refused a mortgage. If your credit score meets the lender's minimum requirements, you will likely qualify for a mortgage, although the rates you will be offered will probably be higher than would be the case for a person with a better score.
Although the precise number of your credit score can and does change from time to time, the general rule is that the higher the score, the better. A high score indicates that you manage credit well, that you pay your obligations as they come due and that you are a good credit risk.
A lot of things can influence your credit score, for better or for worse. It is important that you understand what you can do to ensure that your credit score is as high as it can be when you make application for your mortgage.
We strongly recommend that you find out as early as possible in the process where you stand with respect to your creditworthiness. That way, if there are issues that need to be resolved, there is sufficient time to deal with them before they unnecessarily and negatively impact your credit score when you apply for that mortgage.
Mortgage brokers can offer specific advice on what to do and what not to do to make sure that your credit score will not be an issue when you are really serious about buying that new home. Most brokers provide this service free of charge and are only too happy to help.
We are happy to refer you to some excellent mortgage brokers who have helped many of our clients qualify for the mortgage they neeeded to purchase the home they wanted.
