Can I Get a Mortgage with Bad Credit?
The question “Can I get a mortgage with bad credit?” has been the topic on many peoples’ minds for years. This is especially true with the recent downfall of the economy. A temporary setback in finances can destroy credit score, but once your finances are back on track again, you may find it’s difficult to purchase a home of your own with less than perfect credit.
Of course, while it may be a little more difficult, it’s certainly not impossible.
I Have Bad Credit, Who Will Approve Me for a Mortgage?
The truth is, with the current state of the housing market and economy in general many companies are creating new ways to cater to everyone's needs. Having a good credit score these days may help, but it's not worth as much as it used to be. With a firm job history and proof of income, you will be able to find plenty of mortgage companies for bad credit that will be able to help you.
Knowing the Basics of Bad Credit Mortgages
Obviously, bad credit mortgages are different from an average mortgage in a several different aspects. First and foremost, the most important thing to understand when applying for a mortgage with poor credit history is that you will be faced with a few more limitations than those who have a better history on their credit report.
You may also find that the interest rates you’re quoted may seem a little higher than you expected. These shouldn’t be a deterrent for applying for credit, as you will have the ability to work on improving your score with every repayment you make on your new mortgage.
The Advantages of Bad Credit Mortgages
While a bad credit mortgage may be the first option for some individuals, it may also be the last resort for others. Bad credit mortgages provide people that may have a home that is in risk of foreclosure with a way to save their house. They allow for the ability to refinance, no matter how bad your credit may be.
Refinancing a delinquent mortgage this way allows you to close that old mortgage and forget about all those missed or past due payments you have no way of catching up on. Instead, you get to focus on a fresh, new mortgage, where you can begin with a clean slate. Keep up regular payments and you’ll find that you won’t face the threat of losing your home. You may also find it’s easier to get your financial situation back on track again.
Taking the First Step Forward
The first step in obtaining a bad credit mortgage is the same as that of any other mortgage, you must first apply. A lender will look at all the things previously discussed, such as your job history as well as your salary. Based upon these two main points, a lender will either approve or deny you for a mortgage.
If approved, the lender will give you all of the specifics for what they are able to offer you. In some cases no down-payment loans are available, while in others it may require a 20% deposit. At the time of this information, you will also be told exactly how much your approved loan is worth.
If you’re still asking yourself “Can I get a mortgage with bad credit?”, remember that mortgage companies for bad credit offer people just like you a second chance. They actively help people who may have lost all hope of having their dream home the ability to take a very important step in their lives. These bad credit home mortgages offer an ability to pursue your hopes of being a home owner, no matter what your credit history looks like. So, can you buy a house with bad credit? Yes you can.