Top 20 Mortgage Mistakes Home Buyers Make (and How To Avoid Them)

Mortgage Mistake #1 - Not improving your credit score when you have the opportunity to do so.

A solid credit history can mean qualifying for a larger loan, lower interest rate and lower monthly payments. A high credit score makes you more creditworthy in the eyes of lenders.

Prior to shopping for a home loan, do everything you can to improve your credit score. Pay your bills on time—payment history can account for up to 35 percent of your credit score, according to the Canadian Bankers Association. The longer you pay your bills on time, the better.

Pay off or pay down credit cards, auto loans and other obligations that affect your creditworthiness. Amounts owed account for another third of your score.

Watch out for red flags like minimum-only payments, late payments and dipping into a credit line to pay for living expenses— these suggest you may be in financial difficulty.

And it goes without saying that you need to know your credit score before you sit down with a broker. Know your financial situation and be prepared to explain any potential concerns.

If you give yourself a good six months to correct errors in your credit report, and identify and address potential problem areas, you’ll be in a much better position to buy when the time comes.

If you are in the market to buy or sell and would like to receive Jas's special report, contact him at 647-272-6629 or email him at jasjagpal@rogers.com