Mortgage broker for bad credit
One of the main benefits of using a mortgage broker is that they have regular contact with a wide variety of lenders (both private and institutional), some of whom offer bad credit mortgages to consumers. While the terms are unique for each lender, they usually consider your financial situation and overall credit history. For some parts of the country, especially the large metropolitan ones, you can find lenders willing to approve loans and lend based on the value and equity in a property.
It is important to note here that even though this will usually result in a slightly higher interest rate, and additional fees may apply, bad credit mortgages are normally short term loans that last one year. As your trusted mortgage broker, we can work with you to raise your credit score and then help you move to a new longer-term mortgage that offers a better rate.
If you don’t have an urgent financing demand or you still can’t qualify for a bad credit mortgage with any of those leaders, there are still a few options you may consider, including the following:
Bad Credit Mortgage Rates Options
- Increase your down payment to at least 20% of the buying price of the property.
- Ask a friend or relative to be a co-signer on your mortgage. Your co-signer should have a good credit rating and be in a position to handle the mortgage if you’re unable to meet your repayment obligations.
- Or do everything you need to do to rebuild your credit. A higher credit score when applying for a mortgage loan can save you thousands of dollars since you will be able to qualify for better loan rates and terms.
If your past credit issues are hindering your ability to buy a home, contact our Owen Sound Mortgage Broker today and let’s get you on the path to home ownership!