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Credit History
Will it effect your ability to get a mortgage?
Yes - your credit history and resulting credit score will impact the decision by the lender on financing. So keeping your credit score in good shape is essential to protecting your ability to borrow money at best rates and your financial status. Your credit score is a snap shot of your debt repayment history over a period of time. There are various factors that determine your score. The credit bureau looks at your credit cards, loans, lines of credit and in some cases, mortgages. The score will go up or down depending on your behavior -including paying your bills on time each month, how much you have borrowed against your limit and if you have any history of late payments, collections, or bankruptcy. If you have been late paying your credit cards or loans only once or twice in the past couple of years and have a good reason the lender may overlook these isolated cases. If you have been late more often or within the past 12 months that could effect your approval. If you have been late in paying your mortgage - this will make it more difficult. Working with your mortgage broker to determine the best approach with your application and the lender options and rates available to you - will help you to establish the best strategy for your short term and long term goals. If you have any concerns about your credit pull your own credit bureau once a year or at least before you plan to make a big purchase - for home, car, etc. You can visit www.Equifax.com for details. Pulling your own report will not effect your credit score and will allow you to discuss options with your mortgage broker before you make a move.
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Down Payment
What do you need to know before you fund your mortgage? So you think you are ready to buy your dream home. First step - get a rate hold from your friendly mortgage broker. As your broker :) I will tell you that you need to show proof of income, good credit and the ability to make mortgage payments. I will also tell you that you need to show proof of your down payment. Sometimes the proof of down payment can catch people off guard. So here are some guidelines that may help.
If you have your own cash or RRSP account we need to see 90 days of bank statements proving you have the money in your account.
If you are receiving the money as a gift we need to see a signed gift letter (that I provide to you) and then proof of the money being deposited into your account from the giftor. If this includes the deposit money (the money you give to the realtor upon subject removal) we need to see the deposit of those funds as well. This is the part that can cause some delays and confusion. So be sure to discuss and understand the process to avoid any undue stress on yourself.
If you are borrowing any money for the down payment (from your line of credit for example) we need to see the statement showing how much you will pay each month to service that debt.
As always - if you have any questions - call me anytime. Cheers Pauline 604 813 8402
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Tips for dealing with a renovations contractor
By Michael Sanibel
Since they rely heavily on word-of-mouth to spread their businesses, contractors are motivated to fully satisfy their customers and build a solid reputation. But because bad news travels faster and farther than good news, it's far more common to hear stories about bad contractors than it is to hear about good ones. (You think your updated house looks great, but potential buyers may not feel the same way.
Hiring a top-notch contractor will pay off in the long run, even if the initial cost is a bit higher than if you simply go with the lowest bidder. If the job is done right to begin with, it will last longer and avoid the cost to correct shoddy workmanship. Plus, you save yourself a lot of time and aggravation because you're dealing with someone you can trust.
For more details - visit my website at
www.MyBcMortgage.ca
and go to my blog.
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