As something that has a large impact on the mortgage you will be approved for, including the Winnipeg mortgage rates you will pay, your credit score is important to know and understand.
Many people are aware that their credit score is involved in the approval aspect of their mortgage process, but do you know what a credit score is or why it holds so much weight?
Your credit score is calculated based on an in-depth analysis of your credit, using information provided by credit bureaus. This number then indicates your creditworthiness by showing lenders how much potential risk would be involved in lending money to you. In this case, that money would be lent in the form of a mortgage.
The information that is analyzed to calculate your credit score includes your payment history, the total amount of your debt, the length of your credit history, the types of credit you have in your name and any new credit accounts you have opened.
The largest part of your credit score is made up of your payment history. Anyone that would be lending you money wants to see that you are responsible enough to make your payments on time. The next largest aspect of your credit is the amount owed. Credit history and type of credit are the two smallest categories when it comes to determining your credit score.
Once your credit score is calculated, it can range anywhere from 300 to 900 from both Equifax and the TransUnion, where 900 would be the best score.
Do you know your credit score?
Do you need help finding out what your credit score is?
If you are looking for more information about your credit score and what it could mean to your mortgage loan and what Winnipeg mortgage rates you get approved for, give us a call today! At Ideal Mortgage Solutions, we are always happy to answer any questions you may have and we look forward to helping you better understand your credit!