Your Credit Score and Buying a Home in Vancouver
I recently had the absolute pleasure of interviewing Karli Shih, a top Vancouver mortgage broker with Dominion Lending Centres Commercial Capital Inc. about Credit Scores and how it applies to buying a property in Vancouver.
What is Your Credit Score?
A credit score shows how a Home Buyer has paid their bills in the past.
Credit scores range from 300 to 900. If a Home Buyer has paid their bills on time and and not missed any payments their credit score will be higher than a Home Buyer who is consistently late in making payments, missed payments, or has had a bankruptcy.
The higher a Home Buyer scores, the better the the Home Buyer looks to lenders who are concerned about not getting money they lend back.
How Does Your Credit Score Affect Home Buying in Vancouver?
A credit score will affect how much a Home Buyer can spend on buying a property in Vancouver.
The better the credit score the lower the interest rate and the lower the interest rate the more a Home Buyer can borrow.
This process also works in reverse.
The lower the credit score the higher the interest rate and the less a Home Buyer can borrow. If the credit score is too low, a prospective Home Buyer may not be able to borrow any money at all for a property.
Pay Your Bills On Time and be Rewarded when Buying a Home!
A high credit score from paying bills on time, avoiding missed payments and bankruptcy will pay off when buying a home. If you’re thinking of buying a property in Vancouver make sure to FIRST (Before your Realtor) sure you speak to a mortgage broker (Like Karli Shih!) before you do anything, so that you can get a clear picture of how much you can spend.
Never Bought a Property Before? Looking for Advice? Check out these Great Videos for First Time Home Buyers!
Never Sold a Property? Need some tips? Have a look at these great videos on how to Sell a Condo In Vancouver!
I STRONGLY ENCOURAGE QUESTIONS AND COMMENTS BELOW!!!