How You can Take Advantage of a Bad Credit Mortgage – and What You should Expect
If you have decided to buy some property and acquire your own home, then you should feel excited and a bit worried at the same time. Excited, because it’s possible that within a few months your dream of owning your own property – your own dream house – can come true. Of course, there are also some things to watch out for, as getting a mortgage is not always the easiest thing to do.
Getting a mortgage is especially difficult if you have an unfavourable credit history or if your credit rating is not up to date. Luckily, there’s help to be found. If you are in such a situation, then this is for you: here’s how you can take advantage of a bad credit mortgage – and what you should expect.
What’s a bad credit mortgage?
It’s usually known under another name: the sub-prime mortgage; it’s given to applicants who have less than desirable credit ratings. People receive low credit ratings when the records show they have high debts or, more importantly, have missed several scheduled payments and are not up to date with their financial management. Families with poor credit ratings can still get a mortgage with the bad credit mortgage application.
Your credit score
Your credit score is important – it is a rating given by different agencies which evaluate your financial performance over the past years. Different agencies have different methods of rating, but in general they look for the following:
- Late or non-payments
- Current amount of debt
- History of credit applications
- Types of credit accounts, and the length thereof
Checking for errors
If you fear you may have a bad credit report, check it for any error – these errors are sometimes made. Rectify the errors and set the record straight.
Applications for couples
It might be advantageous to apply in a single name if only one of you has a credit issue. In this instance we would suggest you speak to a professional Mortgage Advisor for guidance.
Of course, it’s always recommended that you seek to improve your credit score, and there are several simple ways in which you can do this. Make sure to pay all your bills on time, and if you have a credit card, make sure your balance is as low as possible. The issue is not that you are in debt – the issue is that people need to be reasonably sure that those debts will be paid (and in time). If you are struggling, don’t forget that the bad credit mortgage is available and that it may be big help – so make sure to learn more about it as you may be able to avail of it in the future.
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AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.
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