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Credit
scores are one of the most important factors that lenders consider when
someone
applies for a home loan. An individual’s score is considered to be
an
indicator of his or her creditworthiness. It goes without saying
that the
higher your credit score, the more likely it will be that you get
approved for
a home loan.
You
can use a minimum score of 640 as a guideline that will
determine if
you will qualify for a mortgage or not. If it's lower than 640
then you
will have a hard time getting approved for a home loan.
Factors
that are used to calculate a person's score include: the amount of
credit you
have currently available, your history of making payments on time or
not etc.
If your score is low at the moment it will be better to try and improve
your
score before applying for a mortgage loan.
One
of the best ways to improve your credit score is to pay your accounts
on time.
A history of prompt payments will show lenders that you take your debts
seriously.
Avoid
taking out too much credit. For the best credit rating try to have only
one or
two credit cards and one or two major debts (like your mortgage and
car) If you
have a lot of credit cards, try to make sure that you use no more than
50% of
your credit.
For
example if your credit card has a limit of R10 000, make sure that you
don't
use more than R5 000. If you can get it lower than 50% it will be even
better.
What's important to remember is, the lower the percentage of your total
credit
limit you are using, the better.
It's
not uncommon for errors to show up on credit reports, so be sure to
check your
credit score on a regular basis.
Thus
if you can get your credit score to move up way above 640, you will
improve
your chances of getting a home loan at the best possible rates.
To apply for a home
loan you will have to fill out a short application form.
You will then receive a FREE quote from well established, nationally recognized lenders. For a No-
Obligation
Quote Click Here
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