Do you know what the the most important number is that you need to know when getting a home loan? It is not your Social Insurance Number, not your phone number, it is your Credit Score.
Your credit score is the number mortgage lenders use to determine how likely they are to be paid back if they were to provide you with a mortgage. Otherwise known as a risk score, it is a statistical measure of your capacity and capability to repay your liabilities.
Still not clear why this is important to you? Well consider this, in today’s new mortgage market (i.e., with the new federal government’s rule changes) missing a couple of car payments, Line of Credit payments, etc. can knock about 25 points off of your credit score. This could quickly move you from the “A Lender Bucket” to the “B Lender Bucket”. In more simpler terms, in today’s market this is the difference of you now paying close to 6% interest instead of closer to 3% interest on a new mortgage. Basically, you just doubled your mortgage payments…YIKES!!!
HOW DO YOU FIX THIS?
Below is a helpful guide that will give your credit score a boost so that you can get yourself back into that “A Bucket” and take advantage of lower interest rates:
Being consistent with payments and keeping a routine on your credit score will go a long way at ensuring that you can continue to take advantage of low interest rates so that you can pay off your mortgage and bad debts quickly.BACK TO NEWS FEED