Hey Londoners, Let’s Talk About Mortgages and Credit Scores!
Introduction So, you’re thinking about buying a home in London, Ontario, but your credit score isn’t exactly bragging material? Don’t sweat it! A not-so-great credit score doesn’t mean your homeownership dreams are dashed. This guide is all about finding your way through the mortgage maze with a credit score that’s seen better days.
What’s the Deal with Credit Scores Anyway? Think of your credit score like a financial report card. It tells lenders how good you are at managing your money. Scores range from 300 to 900 – the higher, the better. But if your score’s on the lower side, don’t panic. It’s just one piece of the mortgage puzzle.
Low Credit Score? Here’s What It Means A low credit score might make lenders a bit nervous, which could mean higher interest rates for you. But it’s not the end of the world. We’ll dive into what different score ranges mean for your mortgage chances and how to play your cards right.
Boosting Your Credit Score: A How-To Guide Improving your credit score doesn’t happen overnight, but it’s doable. We’ll go through some tried-and-true methods, like paying bills on time, chipping away at your debt, and making sure your credit report is mistake-free. Small steps can lead to big improvements.
Alternative Mortgages in London London’s got options for those who don’t fit the traditional mortgage mold. We’re talking about bad credit mortgages. They might come with higher rates, but they’re a solid stepping stone towards your dream home. Let’s explore these alternatives and what they bring to the table.
Why Down Payments Matter More Than You Think Think of a down payment as your mortgage wingman. The bigger it is, the better your chances. Putting down more cash upfront can sway lenders to give you a thumbs-up, even with a not-so-stellar credit score. Generally alternative lenders will want a minimum of 20% down to feel comfortable with your below average credit score.
Busting Some Credit Score Myths There’s a ton of myths out there about credit scores. Like the one about checking your score too often – spoiler alert, it doesn’t hurt it. We’ll set the record straight on these myths so you can focus on what really matters. Checking your credit score on your own bank app, or directly from Equifax’s site won’t negatively impact your score. If you are shopping around for a mortgage, lender’s and credit scoring companies know that you most likely will have a few inquiries in a short period of time. The initial inquiry will impact your score slightly, however provided they are close together (usually within 30 days), you won’t see an impact from further inquiries.
Getting By with a Little Help from the Pros Sometimes, two heads are better than one, especially when it comes to mortgages. Chatting with a mortgage professional (like us) in London can give you the inside scoop on the best steps for your situation. They’re like your personal mortgage guide.
Conclusion Getting a mortgage with a less-than-perfect credit score in London, Ontario, isn’t a fairy tale. It’s totally possible with the right approach and some savvy moves. Keep your eye on the prize, seek out good advice, and take it one step at a time. Your home sweet home is closer than you think.
Reach out and let’s discuss today what your options look like and how we can assist you with getting back on track and into your dream home.