Top ways to get home mortgages even with bad credit – you may have perhaps fallen on hard times or even made some financial miscalculations. If you are lucky, you definitely have learned a thing or two from those mistakes and probably you are now better financially place. It may however take some time for your credit to reflect your good fortunes and therefore this makes it even difficult for you to secure any kind of mortgage. Don’t despair though because you can actually quite easily get a Sherwood Mortgage Group mortgage broker Toronto even with a bad credit and that is if you are ready to pay for it through the nose.
Home mortgages independent agents are easy to get even with bad credit but this will mean that you will have to make some concessions regarding the price of the home you purchase and the interest rate that you will accept. Additionally you will need to put some serious effort to improve your score if you are looking forward to staying on a firm financial footing in the future.
Here are a few tips to help you out.
Look for a Co-signer – you could be able to avoid bad credit home mortgages if you are able to find someone to co-sign for your loan. However, have it in your mind that the person that has co-signed for your will definitely be in the hook. So the consequences will be suffered by both you and the co-signer if you default.
Pay a high down payment – a big, fat down payment is one thing that will make you be a lower risk to the borrower. If you have means of accessing cash, then you are definitely better placed to securing a home mortgage. After all, the most important thing lenders want is an assurance of getting their money back. So if there is more equity on the home you intend to buy, the easier for the lenders to give you the loan. In addition, a higher down payment means that you will avoid paying private Mortgage Brokers Association insurance as this is a requirement of homeowners who usually place down payment that is 20% less than the cost of the home.
Boost your credit – improving your credit score is obviously one way of getting your mortgage. This is an option that will take some time, but there will be a very big difference even by a small increase to your score.
If you can afford some more time, start working on improving you credit score by making sure that you clear your overall debt and timely pay all your credit card and loan payments every month. There are websites available that can give you tips on how to improve your credit.