Importance of clean credit score


So look at the same way when it comes to financial institutions with those two things. Look at as qualifications and experience, so your qualifications would be your affordability that qualify you for certain credit amount, and then the experience would now be your history credit behavior on previous other agreements. If you are clear on both, you could potentially be in a good space for you be able to apply for a home loan. But if you're not, maybe this is the time for you to be doing credit clean ups. So go back now to your credit report, which is what you get from credit bureau and look at which of your credits have you maybe been shady on where you have missed some payments or you've not paid enough, some might already be in default, some of them you might have judgments on. 

Make sure you clean your credit score because the banks will look at them for home loan. We look at the last twenty four months credit behavior in terms of how do you behave when you are in an agreement? After that, you need to raise what is called a deposit. A lot of people have argued this idea of having a deposit when you purchasing, for most of the banks, if you are a first time buyer they will generally give you a 100% loan. But for some people, they might not be able to give you a 100% loan, so will need to buffer up with a deposits.

 Let me tell you two things that a deposit do, number one it means that you're going to borrow less, that already is good on it's own, you don't need to stress about anything else. If you're going to be borrowing less it means you're going to be charged less right? It is simple as that, but the second thing is that it gives the financial institutions that is going into this partnership with you to purchase your home and a comfort and a good feeling that maybe you do know how to manage your finances if you are able to save. In some circumstances some banks will require you to raise a ten percent deposit before they can grant you that home loan. 



No comments:

Post a Comment