3 Pernicious Myths About Bad Credit Mortgages You Need to Discount
It would be nice to own a home, but your credit is not in the best condition. In fact, you think it will be several years before your score is high enough to be approved by any lender. The fact is that you might qualify for a mortgage right this minute. If you are hesitating to apply because of what others have said about lenders who offer mortgages to people with less than great credit, here are some facts that you need to know.
Being Approved is Hard
One of the more common myths about London bad credit mortgages is that being approved is almost as difficult as obtaining a mortgage from a traditional lender. It’s true that lenders who offer these types of mortgages do require that applicants meet certain qualifications. What you may not understand is that the requirements are typically less strict than those used by the bank down the street.
Many bad credit mortgage lenders are focused on your financial circumstances today. Do you generate the minimum amount of monthly income needed to qualify? Do you have little in the way of unsecured credit? How much money do you have in a savings account? Assuming that your score is due to problems that are in the past, you stand an excellent chance of being approved.
The Interest Rates are Unreasonable
Another misconception about bad credit mortgages is that they come with astronomical interest rates. The thing you need to keep in mind is that the rates may only be a little higher than those offered by traditional lenders. In come cases, they may match or even be a little better than rates offered to people with much higher credit scores.
When it comes to interest rates, there are certainly some lenders out there who will only extend financing with very high interest. If you work with the right lender to obtain a Hamilton bad credit mortgage, it is possible to secure a rate that is affordable. Keep in mind that after you have several years of steady payments on your side, it may be possible to refinance the mortgage and lock in a lower rate.
The Terms and Conditions are Even Worse
If the rates are workable, there are those who say that all bad credit mortgage lenders will get you in the terms and conditions. There will be more fees that are bundled in with the amount you owe, and they will be higher than average. That is not always the case.
As with any type of lender, you will want to compare terms and conditions. What you will find is that some of the lenders who are willing to extend the financing will offer more competitive loan contracts. Some of them will extend terms that are much like the mortgage loans offered to people with close to perfect credit.
Rather than relying on what others say, contact a bad credit mortgage lender today and get information you can depend on. Listen closely to what is required and submit an application if you meet those qualifications. Look closely and ask plenty of questions if the application is approved. Assuming you are comfortable with the loan terms and conditions, sign the papers and get ready to move into the home you’ve always wanted.