OAKVILLE NEIGHBOURHOODS AND HOME PRICES
OAKVILLE NEIGHBOURHOODS AND HOME PRICES
Understanding Your Home Buyers 'Credit Score'
The first thing a Mortgage Broker checks is your Credit Score - also referred to as a Beacon or FICO Score. This rating is crucial to getting the money you need to buy a home. Your Credit Score is a record of your history as a borrower (think of all your credit card adventures) and a summary of how lenders see you.
Before you read on, here's a fun little Credit Score Estimator Quiz. The 'risk rating' you receive will determine how much money at what rate the lenders want to give you.
Here are typical factors used to judge your level of risk:
1. Excellent credit rating - No late payments, no collection notices, no bankruptcies or repossessions.
2. Good credit rating - May contain a late payment within the last two years.
3. Fair credit rating - More than one late payment. May or may not have a bankruptcy or repossession in the last two to three years.
4. Poor credit rating - Recent collection attempts, late payments within the last year, bankruptcies and/or repossessions within the last two to three years.
The good news is that poor credit scores can be fixed. Some of the factors which may be negatively affecting your score include failing to make credit card and other loan payments on time and having a high debt-to-credit ratio. You can order your full credit report on-line for $23.95 from Equifax Consumer Services Canada. Also check out the TransUnion Canada site for useful information.
