With a credit scoring system, you are assigned a certain number of points based on each of a variety of factors, such as monthly income, length of employment, occupation, whether you own or rent your home and payment history. Lately, lenders are getting even more sophisticated and awarding points designed to pick at the type of customer that is most profitable or least risky to that particular institution. Some factors that likely will influence a favorable score are if you've been at your job more than three years, you own your home, have two or three credit cards, and have a credit history showing you pay all your bills within 30 days. Persons who never have had credit might have a particularly hard time qualifying. Banks in recent years have also applied a loan affordability rate against a home loan application.
Many institutions generally apply a benchmark borrowing rate to a mortgage application.
Home Equity the great wealth maximiser. The Line Of Credit facility is also very popular with accountants or financial advisers in maximising wealth for their clients. The Line of Credit is basically a revolving line of credit that is secured against your home. The product works best when all income is diverted through this account thus minimising loan interest charges as banks calculate interest daily. The mortgage loan is generally perceived as the biggest single investment one undertakes, so any method which accelerates ownership plus allows greater investment potential is a significant boost to bank customers.