How To Get A Mortgage With Bad Credit
- FAIRCHOICE Mortgage Co.
Categories: Business Loans , Commercial Mortgages , Construction Finances
As a leading mortgage company based in Toronto, we understand that not everyone has a perfect credit score. Bad credit can be a hindrance when it comes to getting a mortgage, but it’s not impossible. In this blog post, we will provide you with some tips on how to get a mortgage with bad credit.
First things first, what is bad credit? When you have a bad credit score, it means that you have a history of not paying back your debts on time or not paying them at all. This can make lenders hesitant to approve your mortgage application as it indicates that you may not be able to make your mortgage payments on time.
However, having bad credit doesn’t mean that you can’t get a mortgage. Here are some steps you can take to increase your chances of approval:
Improve your credit score
The first step is to improve your credit score. You can do this by paying your bills on time, reducing your debt, and disputing any errors on your credit report. It may take some time, but improving your credit score will make you a more attractive borrower to lenders.
Save for a larger down payment
If you have bad credit, you may need to save for a larger down payment. A larger down payment will reduce the amount you need to borrow, making you less risky to lenders. It will also lower your monthly mortgage payments.
Consider a co-signer
If you have a friend or family member with good credit, you could ask them to co-sign on your mortgage. This means that if you are unable to make your payments, your co-signer will be responsible for them. However, it’s important to understand that if you default on your mortgage, it will also affect your co-signer’s credit score.
Shop around for lenders
Not all lenders have the same requirements when it comes to approving mortgages. Some lenders may be more willing to work with borrowers who have bad credit. Shop around and compare rates from different lenders to find the best option for you.
At our mortgage company, we understand that everyone’s financial situation is unique. That’s why we work with each client to find the best mortgage solution for their needs. Whether you have bad credit or not, we are here to help you achieve your dream of homeownership. Contact us today to start your mortgage application. To get in touch with us, please click here or call us at (905) 625-2288.