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The mortgage
industry tends to create its own language and credit rating is
no exception. BC Mortgage lending gets its name from the
grading of one's credit based on such things such as payment
history, amount of debt payments, bankruptcies, equity
position, credit scores, etc.
Below is a guide to help you estimate your credit grade:
|
Grade
|
Credit
Score
|
|
A+
|
670
|
|
A-
|
660
|
|
B
|
620
|
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C
|
580
|
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D
|
550
|
|
E
|
520
|
|
Grade
|
Bankruptcy/Foreclosure
|
|
A+
|
None Allowed Within 10 years
|
|
A-
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Minimum 2 Years, Re-Established Credit
|
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B
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Minimum 2 Years, Some Lates
|
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C
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Minimum 1 Year
|
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D
|
D Discharged
|
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E
|
Possible Current
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The figures
shown here are estimates. When trying to figure your credit
grade, keep in mind the following principles:
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Other Things
Being Equal
When you have derogatory credit, all of the other aspects
of the loan need to be in order. Equity, stability,
income, documentation, assets, etc. play a larger role in
the approval decision.
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Worst Case
Scenario
When determining your grade, various combinations are
allowed, but the worst case will push your grade to a
lower credit guide. Mortgage Lates and Bankruptcies are
the most important.
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Going Once,
Going Twice
Credit patterns are very important. A high number of
recent inquiries and more than a few outstanding loans may
signal a problem. A "willingness to pay" is
important, thus late payments in the same time period is
better than random lates as they signal an effort to pay
even after falling behind.
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