When you decide it's time to buy your Halifax home, it's important to know your credit score up front. Although credit may seem a mysterious concept to some people, it doesn't have to be for you. Paying your bills on time or being oblivious to basic rules of finance, can mean the difference between an A mortgage rating that carries a great interest rate or a B mortgage that carries higher payments.
If you find that your credit can do with some improving before obtaining a mortgage loan, a broker is just the person to help. According to Brian Leland, Equitable Trust's Director of Residential Mortgage Underwriting, "Brokering today is so much more than finding your client a mortgage, they are taking an approach to keep that client for a lifetime so they'll try to coach clients to improve their credit over time."
A broker can advise you on a course of action to improve your credit. Of course, the first step is to identify why your Beacon score is less than perfect. Once you and your Halifax broker review your credit history and understand the reasons behind the credit score, you can move on to taking measures to improve it.
What is the Beacon score, you ask? It's an at-a-glance indicator, determined by the Equifax credit bureau, that lenders use to estimate the probability that you will successful pay back your loan. Beacon scores range from 300 to 900, with 900 as the best possible score. Usually, good credit averages in the 600's. If you have a Beacon score of less than 520 there is a good chance that your loan will be turned down by the bank.
Next time, we will learn how the Beacon score is broken down and how your financial decisions determine your score.
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