If you ask a lender about the ability of people to repay their home mortgage loan, he could tell you that, before to loan $200,000 to a person, he want to know if that person could pay a debt as low as $2000…
This show the importance of your credit history when you want to have a home mortgage loan with good terms and conditions. If your past financial history has demonstrated that you are able to repay your debts on time, this will be a very good point to get a mortgage.
Here follow the different points your bank consider in your credit history:
Credit history established over time: Did you demonstrate over the appropriate time (at least one or two years) that you meet your financial obligations?
Do you pay on time? It is important to demonstrate you repay your debts on time.
Your credit rating. Some credit agencies as Equifax shares your credit information through a credit report. The score, ranging between 300 and 900 points, tells how much you repay your debts and is a good indication for banks to know if it is realistic to lend you a mortgage loan.
The risk analysis for each application considers the whole record. If your credit file is good in all areas you talked about, you could be sure you will get a home mortgage loan with a very low interest rate.
C’est l’ensemble des éléments qui détermine le risque de chaque prêt hypothécaire et qui calme ses deux grandes peurs : Perdre de l’argent et perdre son temps.
Ii is the combination of factors that determines the risk of your mortgage application. If you have a good credit history, you know now this is good news!
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