Monday, August 27, 2012

Should I Refinance? Blog Series Part 4 – How to Get a Mortgage with Bad Credit


Are you a homeowner that is asking yourself “should I refinance” but know that your credit is in bad shape? Know that there are funds that you need but afraid your credit will prohibit you from accessing them? Don’t worry. There are many lenders out there that are willing to work with you even though your credit may not be perfect, and show you how to get a mortgage with bad credit.  

Credit can be bad for any number of reasons. Things like job loss or divorce can leave you in a financial position that has you struggling to pay your monthly bills. Some things are unavoidable, but this doesn’t mean you don’t deserve to have a roof over your head and the financial ability to survive. Thankfully, many lenders recognize and appreciate this and can help you get a mortgage with bad credit! 

Has poor credit forced you to claim bankruptcy or obtain a consumer proposal in the past? Chances are, you are trying your best to rebuild that less than perfect credit. This is all taken into account when you approach a mortgage broker. Your changing payment history will reflect these efforts, so know that lenders can see it.

Don’t know if you have bad credit? One major thing to think about that impacts your credit is your payment history. Have you habitually made late payments, or failed to make payments on a regular basis? Are you continually at the max on numerous credit cards, or are you going over your credit card limit? If you answered yes to these, chances are your credit is in less than perfect shape.

If you think you might have bad credit, or know that you do, again, don’t worry. Banks are no longer the only institutions– or even the institutions with a strong monopoly- in the area of mortgage refinancing. There are many different lenders that are willing to help you and approve your application for refinancing, and your mortgage broker can help you find them and access these funds.

Although the interest rate on refinanced mortgages obtained with bad credit is higher, it can be a good motivator to get the mortgage paid off faster. Knowing that you will end up paying more interest the longer it takes to pay off the mortgage, getting a mortgage with bad credit might be incentive enough to make you pay off the mortgage faster!

Also important when considering applying for a mortgage with bad credit is that your mortgage broker can work with you by going through your finances and can help you work on a plan to rebuild your credit. Setting up a budget and looking at different strategies and approaches to paying off debt and helping you in achieving and maintaining a high credit score is  something that a professional mortgage broker is trained to do.

Refinancing your home to cover various different costs in an important decision, but as a homeowner you should be able to access the value in your home.

For more information about what your answer to the question “should I refinance” might be, and how to get a mortgage with bad credit, please contact Paul Mangion at 416-204-0156 or visit www.themortgagecentretoronto.com

No comments:

Post a Comment