Credit Scores & Credit Reports & How They Affect Your Mortgage Application.
A good credit score is one of the most important pieces of a successful mortgage application. As Mortgage Professionals, we always request a full credit report at the time of application. This allows us to:
- Check the credit score.
- Identify any potential challenges.
- Fix any errors.
- Make any recommendation for improvement.
For an insured mortgage the minimum credit score is now 620, for a conventional “A” deal 600 and for conventional “B” deals 500. Insured mortgages are usually less than 20% down and convention deals will have 20% or more down payment.
Negative Impacts:
- High Limits and Balances
- Missed payments
- Unpaid judgements and collections
- Revolving credit facility that are over limit.
For a credit score to be considered very good, it needs to be 680 or higher out of a possible 900. Tips to keep your credit score high:
- On-time payments
- Different types of credit (installment and revolving).
- Keep balances below 50% of the limit.
The Mainstream Team are experts in repairing credit. If you or anyone you know is having credit issues, we would be happy to give them an opinion on how to fix their credit and what steps to take.
Please watch our video and like it on YouTube and refer to our “Credit Scores & How They Affect Your Mortgage Application” for more information. Please feel free to share with your clients.
Click the link below for our YouTube video!
https://www.youtube.com/watch?v=WFqSQC3S3_U
If you have any clients looking for a mortgage pre-approval or mortgage advice please have them visit our website or call Peter at 204.227.2744.
