Home Buyer Info: Understanding Your Credit Score

Your credit score is a detailed record of your borrowing and repayment history, which lenders use to assess your ability to manage debt.

It includes personal information, outstanding balances, payment history, and past credit applications.

A strong credit score demonstrates responsible financial habits, such as making payments on time and keeping credit utilization low.

On the other hand, late payments, high credit usage, and frequent credit inquiries can negatively impact your credit score.

Since your credit score plays a key role in securing a mortgage, it's important to review your credit report and, if necessary, take steps to improve it before applying for a home loan.

---

5 Steps to Help Improve Your Credit Score Before Applying for a Mortgage: 1. Check Your Credit Report: Request a copy of your credit report from a credit bureau (Equifax or TransUnion) to review your score and identify any errors or negative marks that need to be addressed.

2. Make Payments on Time: Ensure all bills, including credit cards, loans, and utilities, are paid on or before their due dates. Even one late payment can impact your credit score.

3. Reduce Credit Utilization: Aim to keep your credit card balances below 30% of your available credit limit. The lower your utilization, the better your credit score.

4. Avoid Applying for New Credit: Each time you apply for credit, a hard inquiry is made, which can lower your score. Limit new credit applications in the months leading up to your mortgage application.

5. Pay Down Existing Debt: Focus on reducing high-interest debt, such as credit cards or personal loans, to improve your debt-to-income ratio and show responsible financial management.

---

Ready to Take the Next Step? Improving your credit score doesn’t happen overnight— but even small,

consistent changes can make a big difference when it comes time to apply for a mortgage. If you're thinking about buying a home in Newfoundland, I’m here to guide you through the entire process— from reviewing your credit readiness to connecting you with trusted mortgage professionals.

Not sure where you stand? Let’s start with a simple conversation— no pressure, just real advice to help you move forward with confidence.

Jesse Gibbons, Licensed Hanlon Realty REALTOR®Helping first-time buyers across Newfoundland make smart, informed decisions every step of the way.

Email:  jesse@hanlonrealty.ca Call or Text:  (709) 770-7653 www.yournlrealtor.com