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Applying for a Home Loan and Your Credit Score

The GOOD, the BAD and your Credit

Applying for a Home Loan?

When applying for a home loan to purchase your dream home, a lender will evaluate your credit score. It is important to ensure that you get the best possible score in order to have your home loan approved.

“Owning a home is a keystone of wealth… both financial affluence and emotional security”

What is a Credit Score?

A credit score is a numerical value which shows creditors/lenders how likely you are to “pay back the money”, as well as the risk factors before giving you credit.

The better the scoring, the higher the chance the bank will see you as less risky.

What is a “Good” Credit Score?

If your credit score is between 680 – 719, your score is labelled as “good”. This suggests that you would likely qualify for most prime financing facilities.

That been said, it doesn’t mean you will be approved. Aim to get the highest score possible to increase your chances of being approved!

How Do I Improve My Credit Score?

PAY YOUR ACCOUNTS ON TIME! The longer you pay your bills on time, the more positive impact it would have on your credit score. PAY OFF DEBTS sooner rather than later!

Don’t move it around, make sure you pay it off. The higher the outstanding debt, the more negative impact it would have on your score.

When applying for a home loan to purchase your dream home, a lender will evaluate your credit score.

The Good news

Thankfully the Repo rate and subsequently the Prime rate has decreased! This is a great opportunity to really tackle any debt. Ultimately, this would also look good on your credit score! You will become more financially stable.

By improving your credit score and tackling your debt, you give yourself the opportunity to purchase your dream home. Plan ahead and be smart about it…your future is in your hands.

Sign up for Educlips:

Need some help or want to learn more on how to improve your credit score and better plan for your financial future? Click on this link to watch a credit EduClip which will help broaden your horizons on credit!