Can You Get a Mortgage Loan with Bad Credit?
It's not easy to get a mortgage with bad credit, but it's not impossible. If you know what your credit score is and it's not that high, you may well ask yourself if you can still qualify for a mortgage.
One of the things that a loan advisor will look at, when considering taking or rejecting a mortgage application, is your credit score. If you know this is going to be a problem, then look at getting this improved as soon as possible. Such as, limit the number of credit cards you have, debt and the number of credit checks done on you and late payments. The better the credit score, the better the interest rate, but even though your credit maybe bad, it does not necessarily mean you will be declined a mortgage.
If there is no way of improving your credit, then you will have to consider other options to get a mortgage, as you probably won't be granted one. This is thanks to the downturn of the economy, which makes it difficult to get a mortgage approved. You could ask someone to cosign the mortgage papers; however this is high risk to the cosigner, as they would be putting their credit on the line for you.
If you have managed to improve your credit over the last six months i.e. paying bills on time and reducing your debt, you could attempt to get a mortgage. Compare banks to check who is offering the best rates and to see who can you offer you the best deal possible. You may not get the best rate, however you can always remortgage in a few years time, if you continue to improve your credit score.
It's likely you will pay a higher interest if you have a poor credit rating and they may insist you get insurance if you don't have enough funds for down payment. This could increase the cost drastically, so make sure you account for all this and know exactly how much you will be paying each month to the bank. You don't want to be in the position of defaulting on the mortgage, which will virtually be impossible to get another mortgage in future.
Due to the current financial climate, it is very unlikely you will be considered for a mortgage if you have defaulted or filed for bankruptcy in past. All you can do is shop around, but you may find that interest costs are set so high, in order for a bank to trust you that it simply may not be worth it.
To get the best deals, make sure you manage your outgoings and keep your credit scoring good!
One of the things that a loan advisor will look at, when considering taking or rejecting a mortgage application, is your credit score. If you know this is going to be a problem, then look at getting this improved as soon as possible. Such as, limit the number of credit cards you have, debt and the number of credit checks done on you and late payments. The better the credit score, the better the interest rate, but even though your credit maybe bad, it does not necessarily mean you will be declined a mortgage.
If there is no way of improving your credit, then you will have to consider other options to get a mortgage, as you probably won't be granted one. This is thanks to the downturn of the economy, which makes it difficult to get a mortgage approved. You could ask someone to cosign the mortgage papers; however this is high risk to the cosigner, as they would be putting their credit on the line for you.
If you have managed to improve your credit over the last six months i.e. paying bills on time and reducing your debt, you could attempt to get a mortgage. Compare banks to check who is offering the best rates and to see who can you offer you the best deal possible. You may not get the best rate, however you can always remortgage in a few years time, if you continue to improve your credit score.
It's likely you will pay a higher interest if you have a poor credit rating and they may insist you get insurance if you don't have enough funds for down payment. This could increase the cost drastically, so make sure you account for all this and know exactly how much you will be paying each month to the bank. You don't want to be in the position of defaulting on the mortgage, which will virtually be impossible to get another mortgage in future.
Due to the current financial climate, it is very unlikely you will be considered for a mortgage if you have defaulted or filed for bankruptcy in past. All you can do is shop around, but you may find that interest costs are set so high, in order for a bank to trust you that it simply may not be worth it.
To get the best deals, make sure you manage your outgoings and keep your credit scoring good!
About the Author:
Mark Dawson writes for the the Loan Arrangers where you can compare loans and apply online for tenant loans, and bad credit loans.
posted by Credit Counseling at
4:34 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home