What ONE Factor Can Make or Break Your Killer Deal

Posted on 05. Mar, 2012 by in General

When was the last time you checked your Credit Score? If you catch yourself saying “don’t know” or have *any* hesitation, then it’s time you did.

Why? Because once you apply for a mortgage with any lender, the first thing they will do is …… pull your credit score. And, if there is something on it that doesn’t agree with what you have on your application then you have just lost two things:

  • credibility – both with your broker and the bank
  • the deal – maybe you can salvage it?

Banks really do want to lend money – hard to believe sometimes I know, but if they don’t lend out money,  they don’t make profits.

What they are looking for however, is a nice, safe borrower who presents them with all the information they need without complications.

If you haven’t checked your credit report and there is something on there that doesn’t agree with what you have said, the bank has a reason to move onto the next application or at least delay your application until it is resolved.

Additionally, it is totally possible to find something on the report that does not relate to you. You’d be amazed how often someone with the same name as you defaults or skips payments on a credit card and it ends up on your report.

If you aren’t checking your report yearly, or better still, twice a year you will carry on regardless and won’t be picking up these errors.

Most errors can easily be corrected by calling the credit company and explaining your situation and asking them to investigate. This process takes time.

During the application for financing on that killer sweet deal – you know, the one with great cash flow, below market value purchase price and a motivated vendor – this is not the time to correct it!  You need to move quickly on goldmine deals and such delays could easily mean losing the deal.

I’ve always believed there are three traits you must demonstrate in your investing – Confidence, Credibility and Integrity. Without them you will find it hard to create all the deals you want to obtain the lifestyle real estate investing can provide you with.

You must protect these traits and demonstrate them constantly. Get checking that report!

Have a great week.

Richard

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2 Responses to “What ONE Factor Can Make or Break Your Killer Deal”

  1. Jeannette Perry

    15. Mar, 2012

    Can you post the ways to check ones credit score and associated costs? Are there any disadvantages to checking it often?

  2. Richard

    15. Mar, 2012

    Hi Jeanette. You can check your own credit score by requesting it from Equifax at http://www.equifax.ca and as it is your own score/enquiry you won’t get an enquiry hit on your report. A full report costs $24. There used to be a free report that you could request by post but there is no information in it that would be of use!
    There is no disadvantage of checking it frequently as long as it is you. If someone else enquires then you get a hit on your score.

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