You would like to make the leap from apartment dweller to homeowner. The problem is that you had a bit of bad luck with your credit a few years ago. While those problems are resolved, the aftermath of that period lingers. Your credit rating is improving, but many lenders in the Greater Toronto Area take one look and decide you do not meet their qualifications. Before you become discouraged and assume there is no way any lender will approve your application, think again. Help may be no further away than Hamilton. Here are a few tips that will help you find a lender who will be willing to help.
In your case, it’s not just the lower credit score that is an obstacle. A recent job change means you don’t have a long-standing relationship with your employer. Even if you were with the previous employer for years, the short amount of time you’ve logged on the current job could be a deterrent to the more traditional lenders.
Perhaps you are self-employed. While your income is steady, the fact that you are not employed by an established firm and have some past credit problems combines to make many banks and traditional lenders cautious about doing business with you.
The thing to remember is that there are lenders who are happy to work with self-employed clients. While your credit will still have some impact, the fact you generate a consistent amount of revenue and have done so for the last few years will be more of a factor. It’s to those lenders you will turn instead of continuing to talk with the larger banks and lending companies.
Private financing can take more than one form. One of them is likely to be the ideal way for you to obtain a bad credit mortgage and buy the home of your dreams.
Remember that while you may not be able to obtain the mortgage on your own, a relative who is willing to sign along with you could be the most practical way to obtain the financing. Keep in mind the relative is agreeing to pay off the debt if you should default for any reason. Assuming the co-signer has excellent credit, you may be able to lock in more desirable terms and conditions for the loan contract.
Another approach to private financing is to approach a group of financiers who provide help with different types of bad credit loans. Assuming the group does extend mortgages as well as other types of loans, expect your present financial circumstances to be more important than what took place in the past. You can improve your chances of being approved by preparing a budget that would show how you would go about paying a monthly mortgage payment.
You can also learn more about poor credit mortgages in Hamilton by choosing to work with a mortgage broker. If you are unfamiliar with how a broker works, here are a few things you need to know.
Brokers, including those who specialize in helping people with less than perfect credit obtain financing, typically have access to a wide network of lenders. Some of them will be more like the traditional lenders you have approached on your own. Other options will be investor groups who provide mortgages and generate returns based on the interest that is repaid along with the principal. The broker will also have business relationships with lenders who specifically focus on mortgage loans for people who have gone through difficult financial circumstances and are now on the road to rebuilding their credit ratings.
The broker will require much of the information that you would provide for any type of mortgage application. Expect to discuss your circumstances with the broker, including your prospects for continued financial improvement. While these discussions are taking place, the broker will be identifying partners who are most likely to give your application serious consideration. By the time the discussions are ended, the professional will have a clear idea of where to see the financing that you need.
Expect the broker to keep you up to date on what is happening with your application. You may be among the clients who is approved by the first lender the broker approaches. Once the approval is extended, the broker will go over the interest rate, any fees that apply, and the amount of the monthly payments you would remit. Assuming the arrangement is one that you can manage with ease, there will be no need to keep looking. You’ll have the money needed to buy your home, move in, and start this new phase of your life.
Remember that many of these independent brokers work with non-traditional lenders who do report to the major credit bureaus. That means your timely mortgage payments will result in positive reports to those bureaus. Thanks to those reports, your credit rating will continue to improve.
Never assume there is no way you can become a homeowner. There are lenders in Hamilton who can help. All that needs to happen is you deciding that trying this approach to mortgage financing is worth the time and effort. Contact a broker who has financing options through multiple sources. In a matter of days, you could be making moving plans.