You can buy a home with a bad credit history; you just need to find the right mortgage financing package. Before you sign up with the first company that offers you a loan, remember to research offers to be assured you are getting a fair deal.
Know Your Credit Rating
Your credit report/history is one of the biggest factors in determining the interest rate you will pay for your loan and the features (or lack thereof) of the loan that will be available to you. Lenders will require a deposit of generally between 10-20% if their are impairments on your credit file. The more severe the impairments – the greater the deposit. It is always a good idea to obtain a copy of your credit file prior to applying for finance. This is a good time to make sure all the information is correct. Any discrepancies should be checked out and corrected before applying for a loan.
Arm yourself with information so you will know what are reasonable fees for your type of loan. Mortgage brokers are paid for their work through points paid up front or through the lifetime of the loan by the lender. Lenders also make money through points.It is reasonable to expect to pay up to 2-4% above normal variable interest rates for credit impaired mortgage, but any higher and you should be wary. There are always exceptions to this, so use your best judgment and compare.
Read The Fine Print
Once you get an offer from a broker, make sure you read the fine print. Interest rates are easy to compare, but you should also look over the fees that are involved which can add up to thousands of dollars. Also, be sure to understand any fees for late or missed payments.To discuss your mortgage options please feel free to contact us
and we can review your options and provide you with a free comprehensive loan assessment.