The New Year is officially here and 2019 is all about achieving your goals and making your dreams come true. So, if you have always dreamt of owning your own home then now is the perfect time to make that happen.
Interest rates and housing prices are at an all-time low, which means if you act now, you could benefit from these affordable rates.
If you are still a little hesitant on taking the plunge into homeownership because your credit score is a little low, then do not worry because your Edmonton mortgage broker, Vaughn Leroux with Dominion Lending Centres, has listed some useful tips on how to raise your credit score.
Tip #1: Pay Off High-Interest Loans
Once you begin the application process, you will see that your income and credit score make a huge impact on whether or not you can qualify for a mortgage, as well as what home loan rates you might receive. So, in order to get the best Edmonton mortgage rates, it is important to raise your score as much as possible. A useful tip to do so would be to pay off high-interest debt.
Credit cards typically carry the largest interest, so if you could pay off your credit cards as much as possible before you begin the application process, this could help improve your score.
Tip #2: Make Payments On Time
Nothing can hurt your credit worse than failing to make a payment on time. If you have a hard time remembering when a loan payment is due, set a reminder on your phone to go off every month so you never forget. By making regular payments on time, this can help improve your credit and thus have a better outcome on your Edmonton mortgage application.
Tip #3: Avoid Opening Up Additional Lines Of Credit
Don’t fall into the new homeowner trap where those who buy a new home feel like everything else they own has to be new too. Instead, put off making any additional large purchases until after your loan has been approved for because every time you apply for a new line of credit, your score will drop, even if only temporarily.
For additional details on how to raise your credit score or to get started on your application for an Edmonton mortgage, please contact Vaughn Leroux at 780-431-5600.