Can You Get a Mortgage Loan with Bad Credit?
Even though your credit scoring might be a little high, you could still qualify for a mortgage. Not easy, but not impossible either.
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 hope for your credit, you need to look for other ways to buy a house, because a mortgage probably won't ever be granted to you. You can thank these mortgage rules on the downturn of the economy, which is making it difficult for those with bad credit to get a mortgage. One way that those with terrible credit can get approved is to ask someone to cosign the mortgage papers with them. This is risky for the cosigner, because they are putting their credit on the line for you.
Maybe you have managed to improve your credit over the last six months, paying bills on time and clearing some off the debt. You could go to a number of banks to see who is offering the best rates and try and get the best deal available to you. You can always remortgage, should you continue to improve your credit score over the next few years.
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.
If you have actually had to file for bankruptcy or defaulted on a mortgage in past, right now it's very unlikely you will get a mortgage. The only thing you can do is shop around, you may have to pay high interest, so it may well be that it's not even worth pursuing.
Be smart, save to get the best deal and keep that credit score 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 hope for your credit, you need to look for other ways to buy a house, because a mortgage probably won't ever be granted to you. You can thank these mortgage rules on the downturn of the economy, which is making it difficult for those with bad credit to get a mortgage. One way that those with terrible credit can get approved is to ask someone to cosign the mortgage papers with them. This is risky for the cosigner, because they are putting their credit on the line for you.
Maybe you have managed to improve your credit over the last six months, paying bills on time and clearing some off the debt. You could go to a number of banks to see who is offering the best rates and try and get the best deal available to you. You can always remortgage, should you continue to improve your credit score over the next few years.
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.
If you have actually had to file for bankruptcy or defaulted on a mortgage in past, right now it's very unlikely you will get a mortgage. The only thing you can do is shop around, you may have to pay high interest, so it may well be that it's not even worth pursuing.
Be smart, save to get the best deal and keep that credit score 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
10:39 AM
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