Monday, June 28, 2010

My Credit Rating Vs the Mortgage Lender

I have a VERY GOOD credit rating. I always pay all my debts (I might be late by accident, stuff happens sometimes and people get distracted, but that is rare)... and thus my credit rating is incredibly good.

The only problem however is that I am self-employed. I run my own website design company here in Toronto. Its been several years since I was actually employed by someone else.

Thus I am a bit concerned about the fateful day when I apply for a mortgage. Will my application be accepted? Will they try to gouge me with a higher interest rate just because I run my own company.

I also worry about my age. I admit I look young for my age, but that is mostly because I am rather fit, cycle daily, weightlift five times a week and recently took up archery. In the winter I also ice skate. The point is that despite the fact I am now (egad) in my 30s I sometimes still get asked for ID when I order alcohol in a restaurant.

So I can just imagine visiting a bank, shaking hands with the loan manager and then being politely turned down for a mortgage because they think I am a 20-something who is self-employed.

I would like to think my long credit history and excellent credit rating would help convince them I am not only older, but financially capable of handling a mortgage.

Someday I should speak to a mortgage broker and just find out how flexible they are when it comes to self-employed people. (I am guessing they will require a co-signer.)

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