This is a question that most potential loan applicants ask. When it comes to getting mortgage loans, your credit score is the most influential determinant. Mortgage rates vary depending on the lender you deal with and that is why it’s vital to compare different rates from different mortgage lenders. You can approach mortgage brokers to help you secure the best rates in the market. If you have a high credit score, you get high chances of getting low interest rates in commercial mortgage in Montreal. That does not mean if you have a low credit score you cannot secure a mortgage loan. With a low credit score it may be difficult to get low mortgage rates but with a good mortgage broker you can secure good rates that you are comfortable with. So how can you increase your chances of getting low mortgage rates?
What do lenders look for?
Before securing any kind of loan, lenders will look into your financial history to determine whether you are a good candidate or not. They will look into your history of payments on previous loans if you have some which include payments on credit cards, car loans, student loans and revolving accounts just to mention a few. These reports will show whether you make your paybacks on time. If you have a good credit history, this increases your credit score. If you have a low credit score, you still have a chance to clean it up so that you can get low a mortgage rate when time comes.
How do you clean up your credit?
Whether you are planning to buy a house soon or not, it is important to check your credit report and know your status early enough. If your credit report leaves more to be desired, you have to work on improving your score. Financial experts advise homebuyers to check their credit scores a year before applying for a mortgage so that they can have enough time to clean it up if need be. Get your credit report and go over details like making sure your name is spelled right and scour over the numbers to ensure they are accurate. If you don’t how to make out the numbers, ask a financial consultant to explain your credit report in a manner you understand.
If you find you have a low credit score, you need to work out a plan on how to get the points up. You can start by cutting your expenses so that you can pay off any outstanding debts. If you have credit card loans, ensure that you pay back on time to avoid penalties. Try as much to live within your means to avoid getting into more debt which can have a negative effect on your credit report. Talk to a mortgage broker to get more advice on what you need to do to clean up your credit report before applying for a mortgage.
What else can you do?
Sometimes it is unavoidable to put off buying a new home and you have to be forced to work with your current credit score. If you have low credit score, you can approach a mortgage broker and let them analyze your credit report first. They will advise you what you need to do to secure a mortgage loan. They can negotiate on your behalf to get a mortgage plan that you are comfortable with. A good mortgage broker can help you secure a mortgage plan that allows you to make low monthly payments with interest over an extended period of time. If your financial status happens to improve with time, you can apply for a mortgage refinance to get better payment plans with low mortgage rates.