Canada Finance – How Your Credit Impacts the Home Buying Process

How Your Credit Impacts the Home Buying Process

What Makes Up Your Credit Score

FICO ratings run from 300 to an ideal 850, and depend on data the credit departments get about you from Visas and any others you’ve ‘obtained’ from in the past including car, understudy and different sorts of banks. This data may incorporate your installment history, the length of your financial record (in years), the sorts of credit you have and sums owed. The higher your score is, the better – and the contrast between a score of 698 and a score of 700 could mean a huge number of dollars in home loan installments not far off.

Your FICO assessment depends on five key budgetary criteria:

Installment History: About 35% of your financial assessment depends on your bill installment history.

Sums Owed: About 30% of your score depends on the measure of cash you presently owe.

Length of Credit History: About 15% of your score depends on to what extent you’ve been going up against bills – and paying them.

The amount Credit?: About 10% of your score depends on new credit movement.

Sorts of Credit: About 10% of your score depends on the sorts of credit you have, e.g., auto installments, contract installments, Mastercard charges, school advances and so forth.

What to Do If You Have Less Than Stellar Credit

While credit has fixed since 2008, home purchasers with not exactly outstanding credit still have alternatives. Furthermore, there are various credit items accessible for low-to direct salary purchasers.

Chat with your neighborhood FAM Mortgage Advisor today to take in more about what choices are accessible to you.