Posted on
May 22/2020By
northwood
For potential homeowners, getting a pre-approved mortgage seems like the right step to buying a house. However, it’s important to note that pre-approval does not guarantee the buyer will get actual mortgage approval. There’s still a chance the buyer can get rejected based on several factors. In this article, we will discuss how mortgage pre-approval can affect your credit score and how to avoid a big decrease. The Effects of Soft and Hard Inquiries Before applying for a pre-approved mortgage, you should keep track of the types of inquiries you make that could affect your credit score. “Soft” inquiries happen…
Posted on
January 15/2019By
northwood
If you need funds quickly, but don’t have cash in the bank and can’t get a loan, borrowing on your property is a good next option. In fact, getting a second mortgage in Toronto is usually cheaper than a loan because you are using equity in your home as security for the borrower. Second Mortgage in Toronto However, there are certain steps you can take to improve your chances of getting a second mortgage. If you have applied for a loan and been refused, you’ll know the reason why—and it’s most likely bad credit history. First, use one of the three main online credit bureaus to find out what your credit score is. By checking out your credit rating, you should be able to pinpoint the problem and possibly fix it. For example, if you are weighed down with credit card debt, find a way of paying it off. Or,…
Posted on
July 05/2017By
northwood
Your mortgage credit rating can change your life. Taking on a mortgage is a big step. It gives you the freedom to own your own home, and allows you to have one of the most important assets a person can have. When you applied for a home loan, the lender checked your credit rating. Since you were able to obtain the mortgage it means your credit was good or even great. However, when you take on a mortgage, you’re also taking on a mortgage credit rating. Can having a mortgage hinder your credit score? When you get a mortgage, your credit rating will take a dip. A credit score is a numerical value that represents your ability to pay back your debt obligations. Before taking on a mortgage, your debt may have consisted of credit cards, a line of credit or a car loan. You were able to pay these…
Posted on
December 12/2016By
northwood
If your credit score isn’t where you would like it to be, then you should consider changing some of your spending habits and pay closer attention to your monthly statement. Even if you have small debt, missing monthly payments can still negatively affect your credit score. Here are a few tips to help you improve your credit score. Pay Off Any Small Balances Small things can add up. If you have any small balances on your card then you shouldn’t neglect paying them off. Missing your payments can have a bigger impact on your credit score than you think—no matter how small they are. Make More Than Just The Minimum Payment If you just make the minimum payment then you will have a hard time getting out of debt. Try to make more than just the minimum payment and keep at it until you can get your balance down to…
