When applying for an Oakville mortgage, your interest rates are largely determined by how good of a credit score you have. The higher your score is, the better rates you will receive on your mortgage. Here at Loewen Group Mortgages, our team has come up with 4 useful tips that can help you get your credit ready when applying for a mortgage.
Tip #1: Review Credit Report
Before you start the application process, be sure to review your credit report first to make sure all the information listed is accurate. You’d be surprised how many times credit bureaus have made a mistake on people’s record, so be sure to review everything accurately, and fix any mistakes that should not be there.
Tip #2: Avoid Making Big Purchases
When you start applying for a mortgage, it is important that you do not take on any more debt until after your loan has been approved for. Most buyers feel the need to buy everything new when they get a new home, but hold off on that new car or boat until your home loan is finalised. If you take on more credit during the mortgage process, this could slow down the status of your application, and it could affect how much you are able to borrow from your Oakville mortgage lender.
Tip #3: Hold Off On Buying Things On Credit
Now it might be easy to hold off on purchasing a car or a boat, but there may be some things you have to buy right now. If this is the case, try to avoid buying these items on credit. We recommend using your debit card or paying cash so you do not feel tempted to pay more than you can afford.
Tip #4: Don’t Open Any Lines Of Credit
During the application process, do not open any more lines of credit until after you have closed on a home and your loan has been approved. You do not want to risk hurting your credit during this time because even if you get approved for a credit card, your credit score will still drop temporarily.
For more details on how to get your credit ready for an Oakville mortgage, or to get started on your application now, please contact the Loewen Group Mortgages Team at (416) 907-3173.