Worried that you
are not qualified to get approved for a mortgage loan?
Already denied
the last time you applied for a loan?
The most common
reason for individuals getting denied for a mortgage application is a failed credit score. It is, most of the
time, the single factor considered by lenders when trying to figure out if you
are someone who is eligible for a mortgage loan.
But do not worry
too much if you have a bad credit rating because there are lenders who are
willing to give you no credit score home loans.
What are these?
Simply put,
these are home loans awarded to people who do not have a very good credit
score. These loans should make it easier for individuals who have had problems
with their credit to have a shot in owning a house.
What can you do with no credit score home loans? Are there
limitations?
In theory, these
home loans are pretty much like standard loans because they will help you buy
that house you want and badly need. But just because you can get approved for a
mortgage loan does not mean you have to be totally excited because there are
some limitations.
Surely you do
not expect to get everything served in a silver platter even when you have a
bad score, right?
These loans are
for those who are still credit worthy. That means despite having a low score,
they still meet certain requirements like being employed in the last 6 months
or having some savings in the bank.
Also, most
borrowers with serious credit issues cannot borrow more than 80% of the amount
of the property. For the rest, it is possible to borrow up to 95% of the
house's value. It is also possible for you to still enjoy very competitive mortgage rates.
Where can you get these home loans?
Surprisingly,
these loans are not very hard to find. There are enough banks and non-bank
lending companies that can help you get qualified for a mortgage loan.
But what you
need to do first is to find a good mortgage broker. This is going to be
extremely beneficial for you especially if you do not have a lot of idea on
what goes on in a mortgage application.
As long as you
pick a broker who is genuinely willing to help you out, it should be easy to
locate lenders who can offer you the best deals. Most of the time, these
brokers can compile a list of different lenders that offer this type of home
loans. They can also take care of identifying which lenders are most likely to
approve your application. All you have to do then is to select which lender you
feel you have more shot in getting competitive rates from.
Should you worry about high interest rates?
This is a common
concern. For people who have no credit score, home loans seem very expensive. The truth is, they can be since you
are viewed as one that is more likely to default on payments. But if you work
with the right people, then it may not be too much of a problem.
This is why it
is important that you find the right mortgage broker. This is the first step in
the whole process and it will get the ball rolling. The right mortgage broker
will help lead you to the door of the right lender who will lead you to the
right mortgage rate for you.
