If you are planning to buy a house, do you think you would be able to get the mortgage? what factors would affect the credit approval?
Obviously the credit score is the key factor at this point. Lenders use the credit scores as tools to decide what risk is associated with ranges of scores and how much to charge for that risk, it depends on the lender’s tolerance for credit risk.
Other than your credit score, there are many other factors that would affect the credit approval. Such as
Age: Lenders assume that the older you are, the more stable your paying habits.
Marital status: Married people are considered a lower risk than those who are single or divorced.
Credit history: it shows how is your payment pattern in the past.
Occupation: your occupation will definetely influence lenders’ credit decision. The longer you have been staying with the same employer, the higher your chance of getting approved. And if you have a higher monthly income, you get a lower credit risk.
Debt-to-asset ratio: lenders will take a great consideration of the ratio of your debt load to your assets. This debt-to-asset ratio is very much important for lenders to approve your mortgage.
Good credit saves your money, you should always take your financial behaviour as a serious matter.
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Lillian & Benjamin, we help families achieve financial success
contact: lillianwenli@yahoo.ca
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