This is not uncommon.
On a daily basis, we are receiving a huge number of inquiries where people with bad credit history are looking for a home loan. Not all will be approved a mortgage with the bank – at least yet.
Deanna; “I am 22 years old and I do not have a good credit history …”
Bad Credit History
Having bad credit history should not stop you from getting a home loan, although it can make things a lot harder than those with good clean credit.
The most important thing is to know that it doesn’t automatically mean that you cannot get a home loan.
What happened?
You will need to explain the cause of your bad credit history. Once I understand the cause, I can establish how a bank or non-bank lender will access your application.
Credit history is one part of the equation – good credit or bad credit history.
I would stress the word “history” and this does not imply that you will always have bad credit or be a higher credit risk to a lender.
What Concerns The Lenders
Lenders are concerned about the risk to them – not you.
In this case with Deanna, she admitted the previous issues that led to her credit history being impaired. She explained what happened to cause the issues and reason.
Like most of us, she had a situation in her past that would have caused a similar problem for most of us … it was not something that should reflect badly on her.
Lenders will typically look at the credit and other strengths of an application too:
- Income – a lender needs to be comfortable knowing that repayments are going to be able to be met. They will look at both what you earn and also if it is regular income. The preference is always for a good regular income rather than seasonal or performance based income.
- Deposit or Equity – a lender needs to know how much you have on the line and therefore are prepared to lose. They often call this your “skin in the game” and they like to know that you are prepared to risk losing your money too. In many ways it shows as an incentive for you to keep up the repayments as you do not want to lose your money.
As a mortgage adviser I have the experience to put together mortgage applications that some people may think are complicated.
It is always good to have an adviser that can look at the positives of an application and balance those with the negatives, which should result in a situation that makes sense to a lender.
Getting Hard Loans Approved
I have always agreed that the people with money will make the rules.
So, I need to assess your application and find a way to prove to the lender that they should approve and back your application.
Getting complication loans approved with bad credit history, is something that I can do for you.
