Home Buyers Guide

Chapter 5: Mortgage Basics

Mortgage Application Process..cont

The mortgage advisor will liase with the estate agent, solicitor, and bank to ensure the cheque issues when it’s
required.

What is Your Credit Rating and How Can You Check it?

Have you any idea what your credit rating is? Did you know that every time you deal with a financial institution, the lender may update your credit rating report?

When you apply for a loan, mortgage or credit card, the lenders generally view your credit report to help them decide whether to offer you finance. Most lenders want to look at your credit rating, as it gives them a good idea how likely you are to pay back the money you borrow.

This a summary of what shows up on your credit report:

• History of Enquiries in the last 12 months (this typically highlights which lenders you've applied to for loans, credit cards etc)

• Account details of each loan you have had in the last 5 years (e.g. account numbers, how much you borrowed, over how long etc)

• Any loan payments you have made or missed

• How long it was before you cleared the arrears

• The failure to pay off any loan.

• Any legal action taken against you

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