Buying a home is the core of the American Dream, ranking up there on many people’s life goals along with graduating from college, buying a car, getting married and starting a family.
If you have poor credit, accomplishing this dream may seem impossible to you, but it doesn’t have to be! Mortgages for poor credit holders may not be easy to obtain, but they are definitely available to those who are willing to make some sacrifices.
To get a mortgage with poor credit, the first step is to be willing to shop around and talk to many different mortgage brokers and advisors. You should be prepared to be rejected by some lenders, but remember that just because one of them turns you down, that doesn’t necessarily mean that the rest will!
To have the best chance of getting a poor credit mortgage approved, follow these key tips for successfully navigating the mortgage approval success:
1. Choose a Reputable Mortgage Company
Don’t be fooled into choosing a mortgage company simply because it claims to not care about your credit score or states that it specializes in offering poor credit mortgages. These types of mortgage companies tend to rip clients off by approving mortgages to bad credit holders, but only offering them with exuberantly high interest rates attached. Unless you’re made of money and don’t mind paying tens of thousands of extra dollars, this won’t be your best long-term option.
There’s also the danger of loan sharks, who may promise an amazing mortgage rate deal regardless of your credit score, but who may be operating a business that’s not entirely legal.
For the fairest and safest poor credit mortgages, aim to get one from a well known, reputable company that you can trust. As a bad credit holder, you may need to go through many hoops and hurdles to get approved by a reputable company, but this should save you both time and money in the long-run.
2. Explain Your Poor Credit History & Demonstrate Efforts to Rebuild It
Once you’re face to face with a mortgage broker, be prepared to explain why you have poor credit. Is it because of irresponsible spending or because you had an unexpected financial emergency such as high medical bills or sudden unemployment? Whatever the cause, make sure that you’re prepared to clearly and accurately explain the story behind your poor credit rating, as well as to demonstrate what steps you are actively taking to rebuild it.
Show the lender your recent bank records that demonstrate you’re steadily paying off your credit card debt and also make sure to show them any short term loans you have either paid off completely or are in the process of paying off.
By doing showing your progress, it will prove that you’re taking active steps to boost your credit score, and that you’re actually responsible with your finances – whether or not your credit score makes it seem that way. Even poor credit mortgage lenders want to lend money only to people they believe they can trust, so you should consider it your duty to prove that you’re trustworthy.
3. Show a Steady Employment History
If you’ve been unemployed for a number of years, then you’ll definitely struggle to get approved for a mortgage anywhere (unless you have a huge amount of money stored in savings) but if you’ve had steady employment for at least two years then you’ll definitely need to prove that to each mortgage company you consider.
Steady employment and a steady paycheck indicates that you’re financially stable, and that you will have enough funds on a month to month basis to make your mortgage payments. Don’t forget this part of the process, as someone with bad credit will absolutely need to be able to prove a steady income in order to get a loan. If you can prove that you’re making enough money now, even if you’ve had financial problems in the past, it will make a huge difference in your chances of getting approval for a poor credit loan.
4. Offer a High Down Payment
Once you’ve found the property you want, consider offering to make a high down payment on each mortgage application you fill out. This way you’ll demonstrate that you have enough in savings to pay for a significant amount of the property and the mortgage company will have less to lose if you end up defaulting on the loan.
Of course to put a high down payment down you’ll need to have a significant amount in savings, so if you don’t have this yet then it’s time to start saving up! If you don’t have enough money to make a high down payment and you’ve got poor credit, then you’ll find it extremely difficult to get a mortgage loan.
5. Buy Below Your Means
Another way to make yourself less of a risk to mortgage companies is to only consider purchasing properties that are priced well below your financial means. This way you’ll be able to make monthly mortgage repayments much more easily and you’ll be viewed as less of a risky mortgage candidate.
Consider buying a modest property that’s well below your means, or alternatively, look for foreclosures and short sales that offer you genuine value for your buck. Buying below your financial means should allow you to get a mortgage despite your poor credit more quickly and easily approved.
Consider Car Capital Financial
While we aren’t a traditional mortgage lender, we can certainly help you raise money to purchase a new home, a piece of property, or some other form of real estate. If you’ve got valuable enough vehicles, taking out title loans on them could allow you to completely avoid the mortgage applications and approval process entirely!
Our loans aren’t limited by credit scores in any way – we won’t even charge you more interest if you have a bad score. In fact, we won’t even require that you submit to a credit check, or ask for your credit score during our approvals process. If you’ve got terrible credit, but have valuable assets, then trying to get a mortgage might be completely unnecessary.
Alternatively, if you’re looking for a fast way to demonstrate that you’re taking direct action to improve your credit score, consider taking out a car title loan from Car Capital Financial. We offer short term no credit check title loans and can deliver the money you need in a matter of hours – in some cases as fast as 30 minutes! Title loans are issued based on your ability to repay the loan.
Pay off your title loan responsibly and you’ll improve your credit score and boost your chances of getting approved for a mortgage.
Call us now at 1-888-500-9887 to get your safe, reliable and affordable title loan today!