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.
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.
If your credit is bad, you are probably going to pay a higher interest rate, and your mortgage company might even insist that you get mortgage insurance if you don't have enough money for the down payment. This is going to add a considerable cost to your mortgage, so you are going to want to make sure that you budget this in and know how much you're going to be mailing off to the bank every month so that you don't find yourself in a financial pinch. Basically, if you default on this mortgage you are going to find getting a mortgage in the future virtually impossible to do.
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.
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.
If your credit is bad, you are probably going to pay a higher interest rate, and your mortgage company might even insist that you get mortgage insurance if you don't have enough money for the down payment. This is going to add a considerable cost to your mortgage, so you are going to want to make sure that you budget this in and know how much you're going to be mailing off to the bank every month so that you don't find yourself in a financial pinch. Basically, if you default on this mortgage you are going to find getting a mortgage in the future virtually impossible to do.
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 Debt Consolidation Loan at
3:04 AM
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