Mortgage for Bad Credit

Mortgage for bad credit

You probably have bad credit because of a bankruptcy or foreclosure or other financial disaster, it happens!

Lenders are aware that there are unexpected events that do occur and that can result in financial mishap, and unfortunately because of what happened to the economy a few years ago you are not alone! Many people with otherwise good credit histories had to go through a financial bad patch that resulted in some bad marks on their histories resulting in their FICO score going down.

However because the FICO score does play a major part in determining whether a lender will lend to you and at what rate it is one of the first things that needs to be improved!So what are the steps to do this?

  1. Check your credit report for errors, it is surprising but when an error is rectified it canĀ  change your FICO score!
  2. If you have debt and if it is considerable then lowering the amount, that is paying down the amount of debt can have a positive effect on the FICO score.
  3. Having a good detailed written explanation for any derogoratory items on the credit report is always a good idea! There is a high likelihood that the underwriter will request the letter of explanation.
  4. Make sure you always pay on time especially on credit card and installment debt. A good payment history will earn you points with the underwriter.

The above will start you on your journey to a good credit history. When you do finally get approved chances are the interest rate may be a little higher then " market " but you can always refinance once there is more improvement on the credit report also, you may have to make a larger downpayment if you are purchasing a property or look for a co-signer.

We will look at you specific situation and advise you, so please call us!


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