Yes, It is Possible to Get a Mortgage with Bad Credit!
by Arina Smith Loans & Credit 13 June 2018
Falling on hard times is part of life. Later on, when you have your way out of such times, you can look back and say you learned some hard but important lessons. Hard financial times can be caused by loss of income or making bad financial decisions.
Getting out of a financial mess does not happen in one day. If you had some loans that you have not been able to make regular payments on, your credit score goes down drastically. That makes it difficult to secure future loans.
What you need to realize is that you can actually get loans even with bad credit. Get information on sites such as 1st brokerage team to see how you can go about this. The only catch is, all eyes are on you. If you’ve already been turned down by your bank for a mortgage, you can still get a loan. The rates are crazy, but you can access funds. You may also need to make some amendments on the kind of home you wish to buy. Also, make an effort to raise your credit score.
What to do…
Don’t Make this a Permanent Arrangement :
Keep in mind that a mortgage with bad credit is very expensive. As soon as you are able to, move to a better and cheaper loan. Bad credit is not a permanent state after all. You will be able to raise your score with time.
You are not taking a short-term loan though. What happens is this; you plan on making your mortgage payments on time, as well your other bills and debts so that you can improve your credit and get better funding.
Go for an Adjustable Rate :
The rates on a fixed loan are through the roof. Adjustable rates will help to keep your payments at a level that you can manage. Get some expert advice on adjustable loans from your lender or from financial sites so that you know exactly what you are signing up for.
Give Your Credit a Boost :
This keeps coming up. The best way to improve your chances of getting better loan services is by improving your credit score. How do you do this?
- Reduce your debts.
- Make your loan repayments on time.
- Borrow what you can pay comfortably.
- Ensure that you have a steady source of income.
Access your credit score and figure out how you can improve it and how fast.
Make a Big Down Payment :
If you are in a position to, make a big down payment to bring down your debt. If you have had a windfall, here is a great way to make it work for you. This can actually go a long way in helping you secure a cheaper mortgage loan. A large down payment also means you don’t pay private mortgage insurance which you are expected to pay if your down payment for the cost of your home is less than 20% of the cost of the home.
So, go ahead and get your home because it is possible to get the funding despite your bad credit. 1st brokerage team or any sites dealing with bad credit can show you how, but you must work hard to get your credit score back up.
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