If you have bad or no credit, you may be thinking that securing mortgage financing is out of the question. Several years ago, you might have been right; however as the years have passed and with more houses sitting vacant and not bringing in any money, banks and lenders are more willing to offer people a second chance. Mortgage financing may not be so out of reach, after all. If you don’t think you have great credit, there are still lenders out there who will work with you and give you the chance to own the home of your dreams.
How Do I Know If I Qualify for Second Chance Financing?
The easiest way to find out if you qualify for second chance financing is to sit down with a bank or lender and discuss your options. They will ask you all kinds of questions about your work, your income, maybe look at your credit report, and then come back to you with the options available. By just being honest and open with the different lenders, odds are very high that they will work with you.
If you don’t want to spend all of your time on the phone, you can call a mortgage broker. This way, you will only answer the questions once and they can take it from there. They will shop around to get you the best rate on your home loan. All you have to do is sit back and wait for the lenders to come to you. The best part is working with a mortgage broker won’t cost you anything. They get their money from the lenders, so there is absolutely no risk involved to you.
Will I End Up Paying More on My Loan if I Have Bad Credit?
Unfortunately, if your credit is less than stellar, you may end up paying a bit more on your interest rate. It just offers the lenders a little bit of extra protection to get their money back. Don’t get discouraged, however, because if you do pay your mortgage in a timely manner, you can sit down and renegotiate your interest and monthly mortgage. Sometimes you can refinance and get a better rate that way.
That being said, there are some companies that will give people a chance and give them a good interest rate. They may require some kind of extra protection, such as insurance or collateral, but if you’re willing to be a little flexible and creative with the terms, some of them will be, too.
For more information on second chance mortgage financing or to speak with a broker about home loans, be sure to contact Steven Owens at www.mymortgagebroker.com or 403-870-2669. He can answer your questions and get you started on the right path toward home ownership.