One of the biggest factors of getting a mortgage is your overall credit score.
It is unfortunately a numbers game, based on a rating instead of you as an individual. Your credit score is a reflection of your credit history.
The credit score is a way for lenders, including mortgage advisors, credit card companies, car lease companies, etc , to make a quick and relatively informed decision about lending you money.
The most popular score system takes into account you current debt, repayment history (any missed payments or defaults), new credit applications and the type of credit applications you have, all of this information is then formulated into an overall score.
How to keep control over your credit score:
– Keeping a check on your credit score is simple, there are plenty of free, reputable sites that allow you to see your own credit score and history, so you can understand where there are areas of improvement and how good your score is. A lot of these sites also send alerts if your credit score changes in any way.
– Making improvements – Improving a credit score isn’t an overnight fix. However, if you are a responsible borrower, who repays on time consistently then your score will reflect this. Paying off credit cards, meeting monthly payments all amount to you becoming a responsible borrower.
– Knowing when to start paying attention – Your credit score should be a focus at least 6 months before looking to apply for a mortgage, that way you have enough time to start making improvements that will reflect well in your score.
Ultimately, If your score is high, you are seen as a responsible lender, which in turn will mean other lenders, such as a potential mortgage company will be more likely to accept an application.
Want to know more? We’re always happy to help… simple get in touch with our team today.