bad Credit Mortgage
bad Credit Mortgage Services in Canada
It refers to options for managing debt or improving your financial situation. Here’s a breakdown of what you might be referring to:
Monthly Payments Lower
Refinancing or consolidating debt to lower monthly payments by extending the loan term or reducing the interest rate.
Consolidate Your Debts or Catch Up
Debt consolidation, bankruptcy discharge, or an ongoing consumer proposal involves combining multiple debts into one loan with a single monthly payment, which may come with a lower interest rate. Catching up on payments could include negotiating with creditors or finding a repayment plan that fits your current budget.
More Funds Available / Regenerate Points
You may discuss accessing additional funds through a credit line, loan, or credit card. “Regenerating points” likely refers to accumulating rewards points on a credit card or within a loyalty program, which can then be used to offset certain expenses.
Call us Now & Get Approved
What You’ll Need to Get Pre-Approved. Here are some tips to help you get a mortgage if your credit is not perfect
Save a sizeable down payment.
Lenders will evaluate your income, debt, and down payment when applying for a mortgage loan. For first-time home buyers, the minimum down payment is typically 5% of the purchase price. If you can save a larger down payment, it reduces the lender’s risk. A higher down payment, usually between 20% and 25%, demonstrates your financial stability and can lower your monthly expenses.
Locate a cosigner
Having a cosigner for your mortgage can be risky, but it can also lead to significant savings, especially if the cosigner has excellent credit. The cosigner will cover the mortgage payments if you cannot do so. This agreement legally obligates the cosigner to pay the costs if you default. Additionally, because the cosigner is treated as a co-borrower, they can help secure a better interest rate on your mortgage, as their income will be considered during the application process.
There will be renewal options.
You will have the opportunity to renegotiate the terms once the current term ends. Additionally, you can improve your financial situation during this term. PASH Mortgages is your trusted mortgage broker. Contact us today to find out if a Bad Credit Mortgage is the right choice for your homeownership goals.
Increase your credit score.
Avoid taking on new debt or applying for credit cards, as this may indicate financial desperation and could lead to more debt. It is essential to keep your oldest credit accounts open, as they contribute to a more extended credit history. However, you can cancel any account you wish to remove from your credit history.
Stay within your credit limit to demonstrate responsible money management to credit agencies and mortgage lenders.
Ensure that you pay your bills on time. Consider setting up a payment plan if you cannot fully pay your bills. Avoid missing payment deadlines, as this can negatively impact your financial situation.
Consolidate or catch up on your debt.
If you have poor credit and are approved for a mortgage, you can manage your debts and high monthly payments by consolidating them into a single, lower payment. This way, all your debt will be combined into one manageable expense.
More Available Funds
Obtaining this type of loan can increase your cash flow. It reduces your payment, giving you more money for everyday necessities.
Plan for the future
A mortgage can improve your credit score once you begin making payments. As time passes and you consistently make payments, your score will improve. It can lead to better terms in the future, potentially saving you thousands of dollars in interest.
Frequently Asked Questions
Having bad credit doesn’t mean you can’t get a mortgage. Your options may vary based on your credit rating, as there can be a fine line between what is considered ‘fair’ and ‘bad’ credit scores. Some lenders provide mortgages specifically for individuals with bad credit, but these often come with higher interest rates and fees.