What Part Do Credit Scores Play in Mortgage Refinancing?

mortgage refinancingWhen it comes to mortgage refinancing, your credit score plays an important part. If you’re not sure what your credit score is right now you can get a free report here. The best thing you can do is take control of your credit; he can’t fix it if you don’t know what’s wrong! Working with one of our Toronto mortgage brokers you’ll be able to find out what your credit score is, how it’s going to affect your chances, what mortgage refinancing lenders are looking for. Why let your credit score hold you back if you don’t have to?

Why Is Your Credit Score Important?

Your credit score is a reflection of the kind of borrower you are – at least that’s what the lenders think. While they may be right or wrong, your credit report and your credit score do have a lot to say about you. Whether it’s late payments, slow payments, or no payments, you have your credit score for reason. Even if you have equity in your home bad credit score could get you a lot of trouble, but what is good credit, and what is bad credit?

What Does Good Credit Look like?

A good or “desirable” credit score is usually above 680, the further you are over 700 the better off you’re going to be. A high credit score means you’re going to save on interest rates, have much better mortgage terms, and actually be treated better by lender. But on the flipside anywhere below 650 you could run into trouble.

What Does Bad Credit Look like?

Bad credit is under 620 – though some say 580. It really depends on the lender you’re working with that’s why you need to work with one of our Toronto mortgage brokers. We understand which lenders are a little pickier than others.

If you do have a bad credit score, it’s recommended that you work on your credit before you apply for any kind of financing or refinancing. This could mean debt consolidation, correcting erroneous or false reports on your credit report, or paying off your bills one by one on your own. Sometimes though this just doesn’t work, each situation is going to be different. If you’re not sure what to do give us a call, we’ll be able to help you come to the right decision.

What Can You Do about It?

You’re never going to know what’s wrong as you look into it – and that means checking out your credit report. You sure you’re able to get free report, this won’t include your credit score. It’ll just show you what’s on your credit report, but not your credit score. If you want your credit score you’re going to have to get a service from Experian or Trans Union; you can usually get a one month free trial it is just to check out your score.

When you work with us, we’ll help you look over your credit report and figure out what you can improve before you apply for mortgage refinancing.