Can You Get a Home Loan if Your Credit Rating is Bad?
A new home is perhaps the biggest purchase that the average person will make in their lifetime. It is something that can take decades to pay off, but that is well worth it because of the financial freedom and confidence that it can provide. If you are considering buying a new home then Check This Out. You have probably put a lot of thought into taking out a mortgage. The sad fact is that mortgages usually require a good credit rating.
If you have a bad credit score, you will find it very hard to get a mortgage from a mainstream lender home page. That’s not to say that it will be impossible, just that it will be harder to find someone who will lend to you, and that the interest rates will be higher. Also, you will see that there are a lot more restrictions on the amount you can borrow with a poor credit rating – you will find that lenders are more careful to consider your borrowing cost versus your earnings and that they are more likely to want a large deposit. The generous loan to value amounts offered to someone with a high credit rating will not be available in the sub-prime market.
Your best option, if you can afford to wait to buy a property, would be to repair your credit rating before you start looking for a mortgage. If you cannot do that, then you could get a sub-prime mortgage, but it would be a good idea to try to get one that is fixed interest, and then to start trying to repair your credit rating slowly, so that you can move to a much better mortgage once you are more attractive to the mainstream lenders.