by Asadullah 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 your Credit Score 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.
Credit scores range from 300 to 900. If a Home Buyer has paid their bills on time 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 it looks to lenders concerned about not getting the 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 be unable to borrow any money 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 considering 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 to get a clear picture of how much you can spend.