Opening up to someone about your financial problems can be stressful. It takes a lot of courage to admit that you’re living from paycheck to paycheck. You have goals that you want to achieve. But with your current financial standing, it is difficult for you to even look at your bills piling up. You want to blame yourself for the situation you are in. Perhaps, it was your partying and consistent shopping-spree that made you drown in debt.
Don’t worry! You are not alone in this. Most Canadians have also experienced having a bad credit score. After all, having a bad credit score does not necessarily mean you are a terrible spender. Sometimes, there are errors in your credit history or reports, too. So, you also have to check your credit report to be sure.
Now that you want to attain the home you’ve always dreamed of, you are afraid that your bad credit may hinder you from getting a mortgage. It is true that most banks and traditional lenders would immediately dismiss the application of those with bad credit. However, getting a mortgage loan with bad credit is not impossible. You can follow these five tips to guarantee your mortgage approval despite your bad credit.
Fix your credit issues and boost your credit score
The first thing you need to do is to ask for a copy of your credit report. It will show you your credit history. You can review it for errors and reflect on your previous spending.
If your credit report shows you still have unpaid debts, it’s time for you to pay your obligations. Manage your credit cards and slowly work on rebuilding your credit. You can also seek the services of Credit Repair Now. We can fix your credit issues and boost your credit score in no time.
Ask a close family member or relative to be your cosigner
If you have a stable and substantial source of income despite your bad credit, you can ask a close family member or relative to be your cosigner for your mortgage. Your cosigner’s income and credit score could fill in the gaps in the areas you are lacking.
You have to remember that getting a cosigner means someone could vouch for you and your ability to pay your mortgage. You have to be responsible for your payments so that the credit and reputation of your cosigner will not be affected.
Consider getting a bad credit mortgage in Canada
You would be amazed that there are mortgage lending companies for bad credit. They want to give everyone a chance to get their dream home. All you have to do is to be honest with your mortgage application. Provide them with a brief yet significant narration on how you bruised your credit. They may even help you rebuild your credit while you’re at it.
However, you have to deal with high-interest rates and stringent payment terms. You also have to provide a substantial amount as a down payment. This will help them determine how eager and willing you are to get a bad credit mortgage
Put-off buying a home a little longer
Another thing you could do is to wait. Yes, that’s right! Be patient in getting a mortgage. It is quite a known fact that the current economic standing of our country dictates the prices of real estate properties and the attitude of banks and lending institutions towards mortgage applicants. If you can wait until the market continues to improve or until lenders offer promos, you might just get the perfect mortgage.
Seek the help of a bad credit mortgage broker
One sure-fire way of getting approved for a bad credit mortgage is to seek the advice of a mortgage specialist. Since they are experienced and adept at the mortgage industry, they will help you get a personalized mortgage. They can find and connect you to the right lender that could provide you the best mortgage rates and terms.
At Credit Repair Now, you are guaranteed that you can get the best credit repair and mortgage services in Canada. Our team of professional mortgage brokers can assist you with your bad credit mortgage application. Schedule an appointment with us today!