Are You A Newcomer Thinking Of Buying An Edmonton Home?
Canada is known for being a multicultural nation, with thousands of people immigrating to Canada and moving to Edmonton each year. Some of the struggles newcomers could face is navigating the Canadian banking system and establishing a credit history. TeamParanych® believes that with the right advice and support, any Edmonton resident can buy a real estate property or rent an Edmonton home. Below are some tips for newcomers or current residents to help you build your credit.
1) Obtain A Secured Credit Card
The main difference between a secure credit card and a regular credit card is that a secured credit card requires you set aside a certain amount of money. This gives the lending institution greater peace of mind knowing you will make timely payments. Over time you can build a strong credit history simply by making credit card payments when required. After you are confident with their credit rating, you can apply for an unsecured credit card.
2) Make Timely Bill Payments
Unfortunately, tardy bill payments could have a negative effect on your credit rating. If you have to make multiple payment on various bills, consider setting up an automatic transfer or automatic withdrawl for your recurring payments. Keep in mind that it’s just as important to pay the full amount of your bill. So even if you have to pay the minimum amount required, you’re still making the full payment.
3) Check Before Applying For A Mortgage.
If you’re a newcomer considering purchasing an Edmonton real estate property, TeamParanych® recommends checking your credit score 6 months before applying for a mortgage. That way you will have plenty of time to correct any imperfections in your credit. A good thing to keep in mind when you are thinking of applying for a mortgage is that you may need to invest up to 18 months to develop a strong enough credit to qualify for a mortgage.
When trying to build your credit history and credit rating, remember that it takes time. Be patient when building your credit history and educate yourself on the banking system. If you feel that you need additional help, ask a financial services representative. Many banking institutions would be more than happy to sit down with you to answer any questions and help you create a financial plan.
If you’re a newcomer thinking about buying a home in Edmonton, give Terry Paranych a call. Through a complimentary Home Buyers Consultation, Terry can assess your property needs and connect you with knowledgeable business affiliates such as Mortgage Advisors. Terry enjoys connecting people with their dream home so they can start a better life!