A non-major bank has warned hopeful homeowners to check their credit record before applying for a mortgage.
“When you apply for a home loan, the lender will want to see how your ability to handle credit stacks up, and that’s exactly what a credit record shows,” ME head of home loans Patrick Nolan said.
“Most of us have a personal credit history maintained by various credit reporting bodies. It shows basic details like your name, age and address, and it can also feature information that helps lenders decide what sort of credit risk you pose, including details on personal bankruptcies, outstanding debts and even unpaid bills,” Mr Nolan said.
“The good news is that you can pick up a copy of your credit record for free by contacting credit reporting bodies including Veda, D&B and Experian,” he said.
“Reviewing your credit record can also be a money saver. If your application gets a thumbs down, chances are you’ll lose your money.”
Mr Nolan said there are options available if a customer’s credit record has a few dents.
“If any outstanding bills are noted, contact the provider and ask about a payment plan to help clear the debt,” he said.
“If the report contains any errors, contact the credit provider immediately to explain the situation.”
Choosing a competitive mortgage rate is a smart move for first homeowners, Mr Nolan said.
“Making yourself an attractive proposition to lenders by having a good credit record is equally important,” he said.
“That’s why getting to know your credit report can provide a real confidence boost when it comes to negotiating for your first home.”
[Related: Credit Savvy nowhere near as savvy as Veda]