INSIDER PRO TIPS

Steps to keep your credit in check:

• Request a free credit report: Reviewing, fact-checking and understanding what is on your credit report is key. It will help you develop a strategic plan to get your score where it needs to be to qualify for the best mortgage rates and terms possible.
• Monitor your report for any discrepancies: Mistakes happen. If you find an error on your report it’s best to dispute it as soon as you find it.
• Do not max out your credit card limits: Lenders know that people who regularly exceed their credit limit are less likely to repay their debts. It’s too risky for a lender to approve a mortgage for someone who exceeds their credit limits. This behavior also has a significant and negative impact on your credit score.
• Avoid applying for new credit: Yes, it’s tempting to buy new furniture for your future home, but resist applying for new credit. Hard inquires on your report will lower your score and can prevent you from acquiring a mortgage loan.
• Pay your debts on time: Paying your debt down and on time will help make you an appealing and creditworthy mortgage applicant.

Talk to your lender about different rate options that may be available:

• Consider locking in your mortgage rate: If Interest rates are going up it could make your approval challenging. Talk to your lender about locking in your rates after you are approved for the loan you need.
• Ask your lender about the length of the lock period: Free lock rates are often for 30, 45 or 60 days. There may be options to extend the period for specific types of loans at a cost. Try to ensure that your rate period is long enough to get you past your closing date. If an extension is needed, there will likely be a fee.
• Ensure you can take advantage of low rates if they plummet: If mortgage rates drop significantly during your lock period, you may be able to take advantage of the lower rates with using a ‘float down’ strategy. You can also choose a different lender if you need decide to make a change.