by Bo on February 22, 2010
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Building and maintaining good credit can help to ensure mortgage approval!
For most of us, buying a home means financing your purchase with a mortgage. Most often, getting a mortgage depends on your how good your credit score history.
While most consumers know that they have a “credit rating,” not all know their scores or how they were calculated. If your mortgage application is refused, or approved for less than expected, there’s an opportunity for you to improve the score.
Your creditworthiness is assessed two ways:
• Beacon score, and
• A detailed history.
Credit scores range from 350 (low) to 850 (high), with 680 being the median. The numerical score is calculated based on previous payment history, current indebtedness, credit history length, number and frequency of new credit inquiries and, the types of credit held. Two so-called “Beacon killers,” are payments more than 30 days late (even small amounts) and maxed-out credit cards. The detailed history adds personal information, banking information and specifics on accounts and payments.
Maintaining and improving credit depends upon:
1) Pay all bills on time – late payments hurt your rating
2) Keep credit balances below 75%of the maximum
3) Avoid applying for additional credit; too many applications in a short period signals financial difficulties
4) Make sure that personal information in your credit file is correct
You should also review your credit history at least once a year, it is free when requested in writing or by fax.
How can a Mortgage Broker help?
Getting your finances in order can be a daunting task. A Mortgage Broker can help you assess your current credit situation and help you determine a path for credit improvement. A Mortgage Broker will work with you to find a solution for your unique financial situation.
by Bo on February 14, 2010
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Hello Everyone:
These days, every home or condo buyer in Winnipeg knows that, at a very minimum, they need to be pre-approved before shopping for a new home. But being pre-approved by the RIGHT lender is just as important. With almost unlimited choices, between Banks, Credit Unions, private lenders and mortgage brokers, whats the best choice for today’s home buyer? Many are turning to Mortgage Brokers, for a variety of reasons. Here are some very important ones to consider:
Ten great reasons why you should talk to a mortgage broker
A home is the biggest purchase most of us will ever make.
And a mortgage can be a powerful financial tool. No surprise, then, that a growing number of Canadians have started to ask some smart questions about their mortgage. In fact, more than 30% of all Canadian mortgages are now arranged through mortgage brokers. Why? Here are 10 great reasons:
1. Choice.
A broker has access to mortgages from a huge range of lenders – so their clients have by far the best choice of rates and mortgage options. With partnerships in a vast network of over 50 lending institutions, including banks, credit unions, trusts, national and regional lenders, and non-traditional lenders, your broker can help design the perfect mortgage for you.
2. Independence and objectivity.
A mortgage broker actually works for you, not for any one lender. That kind of objectivity means that you – the client – are the focus. They fit the mortgage to the client, not the other way around.
3. Negotiating power.
Mortgage brokers have negotiating power because the lenders compete for their business. You’ll get the best rate for your situation.
4. Access to rate promotions.
You may not realize it, but there are sales and promotions in the mortgage world, too. Lenders often offer special rate promotions, for example. Your broker will know about these special offers, and whether they might work in your situation.
5. Expertise.
An AMP-designated mortgage broker is a financial specialist. That’s the kind of expertise you want to guide you through today’s plentiful mortgage market. With 35-year amortizations, re-advanceable mortgages (mortgage combined with a line of credit), no income documentation products for the self employed, credit repair and debt consolidation solutions, today there are mortgages for almost any situation. And your independent mortgage broker knows them all.
6. A focused specialist.
A mortgage is a very significant financial event. Mortgage brokers are in only one business, and they do it exceedingly well. That’s what you want: someone who’s focused on the mortgage marketplace and your needs.
7. Rates.
Getting a lower rate can potentially save you thousands of dollars. That’s why more homeowners are more likely to call a mortgage broker to check out their options for their first mortgage and at renewal. Call early; your mortgage broker can usually guarantee an interest rate for 90-120 days.
8. One credit inquiry.
Rate-shopping on your own can actually be hazardous to your credit. Every time a lender checks your credit, the credit bureaus take notice. Too many inquiries and your credit rating can weaken, possibly affecting the rate and terms of your mortgage. Your broker does one inquiry only, regardless how many lenders you’re looking at.
9. No cost to you (o.a.c).
As a rule, the winning lender pays compensation to your broker for the services and solution provided.
10. Personal attention.
You need a mortgage plan that is a custom fit for you, and a broker who keeps in touch with you during your mortgage years. Keep in mind that their business is built primarily through referrals from satisfied customers, so your positive mortgage experience is essential for their ongoing business growth. Your mortgage is a big decision and a powerful financial tool.
Geoff Blacklin is a Mortgage Professional with Mortgage Architects in Winnipeg. He has 7 yrs. experience in the mortgage industry and is ready to help you. You can see his website at Mortgage Architects, and you can e-mail him at geb@essexequip.com or phone him at (204) 942-6008
Top-Producing REALTOR® with Re/Max Performance Realty. I work with Buyers and Sellers of homes and condos, with special knowledge in the field of Condominiums.
