The Myplace Playbook // 064
Hey Everyone,
I want to talk about something that came up a few times in the replies from the last couple of weeks.
Not the rates conversation. Not the down payment one.
This one.
"I don't think my credit is good enough."
I hear this one a lot. More than most people would guess. And almost every time I hear it, the same thing happens: the person saying it has a rough idea of what their credit looks like, based on a number they saw somewhere, once, maybe a year ago. And they've been carrying it around like a verdict ever since.
So let's actually talk about it.
First**, **do you actually know your score right now?
Not a rough feeling/idea about it. The actual number, pulled in the last 30 days.
If the answer is no, then "I don't think my credit is good enough" isn't really a fact. It's a worry that hasn't been looked at yet. And there's a big difference between those two things.
Credit scores move. They respond to what you do. A balance you paid down six months ago, a card you stopped using, a collection that dropped off, those things show up. The number you're imagining may not be the number that's actually there.
Here's what lenders actually look for.
In Canada, most lenders want to see a score of 680 or higher for a standard insured mortgage. Some lenders will work with 620. There are options below that too, though they come with different terms and a shorter list of lenders willing to look.
A 650 isn't a door closed. It's a different set of doors.
And a 600? That's not a forever verdict either. That's a starting point with a playbook attached to it.
The best thing is that credit moves!
Credit is one of the most fixable parts of your financial picture, and it moves faster than most people expect.
Paying down a revolving balance, getting a secured card, disputing an error that shouldn't be there. Six months of focused effort can move a score meaningfully. Twelve months can move it significantly.
I've seen people come in convinced they were years away from qualifying, and they were six months out. I've also seen people come in expecting a clean approval and discover something they didn't know was sitting on their bureau. Neither situation is better to find out about later.
What I'm not going to do is tell you your credit is probably fine.
Maybe it is. Maybe it isn't. I don't know yet, and neither do you if you haven't looked recently.
What I can tell you is that not knowing is the most expensive option on the table.
Because if your credit is fine, you've been sitting on the sidelines for no reason.
And if it needs work, the clock doesn't start until you know what needs fixing.
Here's the move from the playbook I’d suggest.
Pull your credit. Equifax and TransUnion both offer free reports. Or hit reply and I'll walk you through what a lender actually sees when they pull it, and what the numbers mean for your situation specifically.
Not a sales call. Not a pitch. Just a straight read on where you actually stand and what, if anything, needs to happen before you can move forward.
Most of the time, the answer is better than people expect.
And even when it isn't, better to know now than to find out the day you fall in love with a house.
-Andrew
Find out what’s possible!
You can build a quick mortgage scenario online in under a minute–or just hit reply and I’ll run it for you.