Even under the best of circumstances, getting your mortgage application approved can be difficult – there are often many issues (no matter how minor) that can combine together to create a big obstacle for success. One of the main obstacles is often the result of a negative report on the credit back-check; those with a bad credit rating often see their application flat-out denied.
However, it doesn’t necessarily have to be that way – it’s still possible to get a mortgage approved because some mortgage lenders are more lenient than others, and rather than following strict guidelines, investigate the applicant’s situation on a case by case basis. Do you have a bad credit rating? Here’s how you can still get your dream property.
Take the right steps
Never think that the decision of whether or not a mortgage is going to get approved lies completely in the hands of the mortgage lenders or financial institutions – there are things you can do to prepare yourself. You need to take some steps and be proactive.
Check your credit rating
Do a credit check on yourself and see how good (or how bad) your situation really is. It will help you prepare and find the right mortgage lender. Furthermore, there may be things that you can do to fix some issues (paying all your debts, correcting any mistakes, and so on).
Don’t throw a net; be specific
This is very important and should never be underestimated: don’t just go to your bank to apply or make multiple applications online – this could actually be used against you, as it gives the impression that you yourself don’t feel confident. Seek advice, be selective, and apply once you’ve found the right lender.
Look for additional deposit funds
The higher the deposit you yourself can put down, the higher the chances that your application for a mortgage will be approved, for two good reasons: first, it lowers the risk of the lender, and secondly, it shows that you are financially serious about the loan.
Find the right broker
It pays to find the right broker – the reasonably priced professional who understands the business and can give you invaluable advice and insight and can help make your dream come true.
It should be noted, however, that those who approve mortgage applications (usually seen as a ‘bad credit mortgage’) to applicants with low credit ratings tend to charge higher interest – and this is perfectly understandable; those with lower credit ratings do pose a higher risk, and therefore the lender expects a higher return on their investment. What’s great is this: whether you have no credit rating, a bad one, or whether you have missed payments on mortgages or bills in the past, it’s still possible for you to pursue your dream of owning a home.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME OR PROPERTY, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.