Real Estate

Don’t let your credit hold you back from getting a mortgage!

Your credit can sometimes be the one variable holding you back from obtaining the financing needed to obtain a mortgage. I have listed some TIPS on how to not only improve your credit, but keep it in good standing while you are waiting to purchase a home.

  • Payment History — This accounts for about 35% of your credit score. Carrying balances from month-to-month and missing payments are two factors. Other factors include the number of missed payments — 1 missed payment in 8 -10 months is not bad, and how long the payment was outstanding matters. TIP: Pay the minimum by the due date.
  • How Much is Owed — This looks at the total outstanding balance in relationship to the total of all credit limits and accounts for 30% of the credit score. TIP: Pay down your debt to at least 30% of the global loan limits.
  • Account History — The length of time your credit account(s) have been active accounts for 15% of the score. The older the credit, the higher the value TIP: It is best to cancel newer credit accounts before older ones.
  • Recent Inquiries — This accounts for 10% of your score. Too many inquiries can send a message that a client may need money, which has a negative impact on your credit score. A client ordering his or her own credit report has no impact.
  • Type of Credit — This accounts for 10% of your credit score. Credit is either revolving (credit cards) or instalment (car loans). Higher credit scores are given to people with a blend of credit from various sources.

Spencer Murray Mortgages Website


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