Get a mortgage with bad credit?
Get a mortgage with bad credit? When you are decided to purchase a home, chances are you will need
a mortgage. A mortgage is a loan secured by the property you are buying.
But what happens if your credit rating is bad?
CanadianMortgageFinder has been providing mortgages to borrowers that
have lousy credit since 2003. In this article we will talk about getting a mortgage
with bad credit.
Good credit vs. bad credit?
Having good credit is the ideal situation when your need a mortgage. With good
credit you can expect the lowest rate, best terms and overall the best of everything.
This does not mean however, if you credit is bad, that you cannot qualify for a mortgage.
Certainly you can qualify even if your credit is not so good. You may need to pay
a higher interest rate, more of a down payment, and less favorable terms. Check this out
None the less, you can still own your home, and work to improve and rebuild your credit. Eventually,
qualify for the best rates when your credit becomes good.
If my credit is bad, how do I find the right mortgage lender I can trust? There are lenders that specialize in approving mortgages to people with adverse credit. In Canada, these lenders are called B lenders. They are banks, trust companies or Credit Unions. They accept derogatory credit of all sorts and have more flexible qualifications.
The best way to find a bad credit mortgage is to work with a reputable, experienced mortgage broker. A knowledgeable mortgage broker will place you with a lender that is lower priced, and provides most favorable conditions for your situation.
I have bad credit but my spouse or partner has good credit, how will I qualify for a mortgage? In situations like this, it is the lower rate applicant that determines the type of mortgage that can qualify. For instance, if your partner has good credit, but yours is challenged, a mainstream lender will not approve the mortgage. To get approved a broker must place the mortgage with a subprime or B lender.