The best construction loan tips for Brampton new build homes all revolve around credit. Because construction loans typically have higher interest rates than traditional mortgages, it’s important to make sure the credit score behind the application is as good as possible in order to facilitate the best possible interest rates for you and your situation.

Know how the score is determined - Business credit scores are generated in the same fashion as personal ones; meaning the score is based on factors such as the length of the businesses credit history, if payments to vendors who have extended credit are paid in a timely fashion, total outstanding debt, types of credit accounts on file, and any existing incidents of insolvency or bankruptcy.

Know how a business credit report differs from a personal credit report – Where a personal credit history report includes details such as name, past and current address, and a list of accounts, the business credit report is detailed in a different, more trade-oriented way. Business credit reports aren’t only viewed by lenders; they are also requested by current and prospective clients. As such, these reports require specialized information that provides an in-depth view into your businesses’ financial health. The business credit report will list your company’s pertinent details including name, points of contact, and length of credit history. The report will also include a type of analytics known as ‘predictive risk scores’ that forecasts the future economic health of a company up to a year from the date the report was requested. The detail, when compared with that found on personal credit reports is extensive. From detailed banking information, to descriptions of debt collateral, the business credit report is basically an encyclopedia on your company and finances.

Know how to keep your business credit in good standing – Although the information included in a business credit report is exhaustive, the way to keep your credit in good standing does not differ from how you maintain your personal score. First, request your own copy from Equifax or TransUnion, one of the two main credit bureaus in Canada. Then, go over all the details included to ensure accuracy and that you recognise all the associations listed. Report any errors or discrepancies immediately.

In order to maintain a good credit score before you shop for a construction loan:

• Don’t defer or make late payments – this will lower your score and show as missed or late payment history.
• Don’t close any credit accounts, especially older accounts – this will show a history of credit, and if the accounts are paid off it will increase your credit-to-debt ratio which will increase credit score.
• Do actively lower any open balances to increase your overall credit-to-debt ratio – this will also increase credit score and show responsible credit management, giving you the appearance as being low risk to lenders.

he second best construction loan tips for Brampton new build homes involve budgeting, particularly smarter shopping for both products and services.

One online platform for smart shopping is called Shop2Save and holds particular benefit for builders. You can get the best deals for business purchases without having to price shop and, as a member of Shop2Save you’ll also be rewarded for shopping with their proprietary loyalty program. Shop2Save has the ability to provide the best prices because they use the power of their massive member-base to procure volume discounts that are typically reserved for the largest corporations. Members can receive 45% back in real cashback reward dollars simply for shopping as a member. Shop2Save also offers cashback rewards for arranging products and services through their collaborative partners in both real estate and for financial products. Imagine, getting cashback rewards for using Remax or Dominion Lending Centres; two institutions you likely would have connected with on your own anyway.

The most important construction loan tips for Brampton new build homes are credit and smarter shopping – visit shop2save today to see how they can benefit your business!