There’s an evident lack on financial education nowadays. Be it mortgage misinformation (or credit status know-how), borrowers are suffering the huge consequences.
“Believe it or not ladies and gentlemen, banks want to have clients with great credit, they need to have the great clients on their portfolio, so they can leverage that portfolio. If you're one of those great clients, you’re GOLD to them. They’re gonna give you whatever you want.”
- Chris Colston from Second Chance Credit.
Applying for a mortgage today without any kind of information on your credit status, could increase your monthly mortgage payments. Even if you’re a first time buyer, or looking for your 4th or 7th house, your credit score will determine the rules of engagement regarding everything around a mortgage deal.
If you’re not considering getting a fixed rate mortgage you’d enter what we call the “risk based pricing zone”, this means your bad credit status will make you appear like a liability in the eyes of the lender. Increasing the total of your monthly payments and resulting on a bigger total at the end of the loan agreement.
It could even become the deciding factor on your mortgage eligibility:
“A quarter percent difference between one score and 20 points higher could mean a huge portion of their payment that would qualify or disqualify you for a house.”
- Phil Stevenson from PS Mortgage Lending
Reach out to PS Mortgage Lending. We're happy to help.
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