Looking into buying a house, but you’ve got some bad marks on your credit record? Don’t worry; this is actually a lot more common than you might think. Although having bad credit can seem like the end of the road when it comes to getting a mortgage, there are still a number of options available to you.
However, it is possible to get a mortgage with bad credit, although you’ll probably pay higher interest rates and may need to come up with a larger deposit. There are mortgages designed for people with poor credit, and some lenders specialise in offering these. These are known as bad credit mortgages, adverse credit mortgages, or sub-prime mortgages.
But if you want to get reliable services for mortgage transfer Abbotsford, Sandhu & Sran Mortgages can be a good fit. We offer personalized solutions to our clients and ensure you fulfil all your needs. In this post, we’ll discus if it is possible to get mortgage with a bad credit.
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Why Does Bad Credit Affect The Mortgage Process?
Lenders want to make sure that they’re going to receive their loan repayments. So, if you’ve struggled with your finances in the past, it suggests that you might default on future loans. This increases the risk to lenders, which is why they may be reluctant to offer you a product or may raise their interest rates.
What If The Mortgage Has Been Rejected?
It can be a deflating experience if your mortgage application gets declined. But, it shouldn’t be cause for worry as many alternative options are available. Speaking with a specialist mortgage provider could help you see the variety of solutions that can be offered in your circumstances.
Should One Wait For Their Credit Score To Improve Before Buying A Property?
Sometimes, people think that once you have bad credit, it stays with you for life. But this is not true, over time you can actually improve it. If you give yourself some time to build up a positive credit profile, you may be able to counteract some of the bad marks you have on your record before applying. But is it worth doing this?
Some of the pros and cons of working on your credit score before applying include:
Pros
It Can Open Up More Choices
It’s no secret that having bad credit can lower the number of options available to you. Improving your credit score before applying could open up more options and potentially help you get a better deal.
Better Chances of Approval
Although there are options available to people with bad credit, there is always the possibility that your application may be rejected. Working on your credit score can, therefore, boost your chances of approval.
Cons
Long Process
You won’t be able to improve your credit score overnight, so it will be a longer process to own a home. If you’ve found your dream house, you may not have the time to work on your credit score.
If you collaborate with Sandhu & Sran Mortgages, you won’t have to face any issues in your mortgage journey. Whether bad credit, mortgage transfer, or mortgage renewal Abbotsford, We will cater to all your requirements. Our team will help you get the most out of your deals. Therefore, ensure a smooth process with seamless experience!