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.
There are a lot of different things that a loan advisor will look at when deciding whether or not to accept or reject your loan and your credit score is one of those things. If you know that your credit score is going to be a problem, you should start taking steps to repair it right away. If you want to improve your credit, limit the number of credit cards that you have, the amount of debt that you carry, the number of credit checks that are done on you and the number of late payments that are made. A good credit score is going to get you a better interest rate, but just because your credit is bad, doesn't mean that you won't get 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 your credit has been improving for the last six months because you have been doing everything right (paying your bills on time, reducing your debt and so on) you might want to see whether you can get a mortgage now. Now is the time to go from bank to bank and see which one is going to offer you the best deal possible. You still might not be able to get the lowest interest mortgage, but if you continue to improve your credit score you can always remortgage in a couple of years to a better rate.
You're probably going to be left with paying a higher interest if you have a poor credit rating. The mortgage company may well insist that you get insurance, if you don't have funds to cover the down payment. This could increase the cost considerably, so you need to ensure you budget for everything and know exactly how much you will be paying each month. If you default on a mortgage, it is very unlikely that you would ever get another mortgage in the 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.
If you want to be smart and save a lot of money in higher mortgage rates, keep your credit score good.
There are a lot of different things that a loan advisor will look at when deciding whether or not to accept or reject your loan and your credit score is one of those things. If you know that your credit score is going to be a problem, you should start taking steps to repair it right away. If you want to improve your credit, limit the number of credit cards that you have, the amount of debt that you carry, the number of credit checks that are done on you and the number of late payments that are made. A good credit score is going to get you a better interest rate, but just because your credit is bad, doesn't mean that you won't get 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 your credit has been improving for the last six months because you have been doing everything right (paying your bills on time, reducing your debt and so on) you might want to see whether you can get a mortgage now. Now is the time to go from bank to bank and see which one is going to offer you the best deal possible. You still might not be able to get the lowest interest mortgage, but if you continue to improve your credit score you can always remortgage in a couple of years to a better rate.
You're probably going to be left with paying a higher interest if you have a poor credit rating. The mortgage company may well insist that you get insurance, if you don't have funds to cover the down payment. This could increase the cost considerably, so you need to ensure you budget for everything and know exactly how much you will be paying each month. If you default on a mortgage, it is very unlikely that you would ever get another mortgage in the 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.
If you want to be smart and save a lot of money in higher mortgage rates, keep your 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
1:37 AM
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