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
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