Credit When Buying A Property

Today we're going to talk about credit. Credit is very important when you're buying a new property and looking for a mortgage loan.

Lenders want to see how you've repaid your credit in the past and to ensure that you're going to pay them back when you get a mortgage in the future. What lenders look for and the most important thing is generally a rule of two two trade lines for two years, with a minimum balance or limit of $2,000.

So what that means is you want to have at least two trade lines. So a credit card and a line of credit, or a car loan and a credit card. Those are individual trade lines. Each trade line you want to have had for at least two years, and ideally for a credit card or a line of credit, you have a limit available to you of at least $2,000. With this information, the lender can see how you've managed your credit over a period of time, making sure that you are managing it well and making your payments on time.

Another thing that is probably the most important component of credit is making your payments on time. One of my personal tips for that is to be sure you contact your credit card company and have them set you up on automatic payments for just the minimum amount due each month. It's generally only a small amount, maybe 10 or $20, that's due each month, so it's easy to afford. It comes out automatically and you can be sure you always have perfect credit.

If you have any other questions, give our team a call. We're always here to help. Have a beautiful day.