Ready to Purchase?

When it comes time to purchase a home, one of the most important factors to consider is your credit score. A credit score is a three-digit number that reflects how you have managed your financial responsibilities in the past. It is used to determine how likely you are to repay a loan and it is a key factor in determining your ability to obtain a mortgage.

A good credit score is generally considered to be any score over 700. However, it is important to remember that banks and/or lenders may not just look at your credit score, but also the amount of debt you have, the length of your credit history, and other factors. Having a good credit score can help you get better interest rates on your mortgage, and it can also open up more options for you when it comes to mortgage lenders. It’s important to make sure you maintain a good credit score before you apply for a mortgage, and also to be aware of any potential issues that could affect your ability to get a loan.

The Five C’s of Credit

There are five C’s of credit: Capacity, Capital, Collateral, Conditions and Character. Lenders use these to determine if you’ll approve on a loan or not. They also use these factors to set your loan rates and terms. 


Recently we shared some tips on ways to improve your credit score. They are:

  1. Pay your bills on time – a history of paying bills on time is one of the most important factors in improving your credit score. 
  2. Keep balances low on credit cards and other “revolving credit” – high outstanding debt can affect a credit score.
  3. Limit credit inquiries – multiple credit inquiries can lower your score.
  4. Establish a positive credit history – try to establish a positive credit history by using credit cards and other types of credit responsibly.

Please contact me with any questions at (403) 875-2969 if you want to talk about ways we can check your credit score OR if you need assistance with credit and your mortgage.