A home loan is indispensable for multiple housing needs. However, it is not easy to borrow. This is because many lenders follow pedantic set of approved criteria for borrowers. One of them is your financial state. If you have bad credit, you have fat chance to get housing finance.
However, there are some things you need to follow to get bad credit home finance.
Firstly, you should understand that banks or lenders favor borrowers with stable income. So, stress it to your lender that you have job stability to qualify for the finance. If you are working in an industry, emphasize your tenure of employment to your lender. Substantiate it with proper documentation like salary slip and employment experience certificate. If you have received annual merit-pay hike recently, mention it in your application form. These things collectively help offset bad credit greatly.
If you live in a rented house/flat, tell your lender that you have been regular rent payer to your landlord. Substantiate this with proper documentation including those bearing signature of your landlord. This will help your lender understand about your consistency in making payment against dues/liabilities.
If you are ignorant about your actual credit score, you should better study it carefully. It will help you understand true picture of your financial status. If the credit score is lower, you would avail home loan at higher interest rate. In addition, the credit score will help you know whether or not you can qualify for the finance.
Most lenders become skeptical at borrowers with very poor bad credit. In that case, logically explain to your lender that your bad credit is the thing of past. If your saving habit is impressive, it would be saving grace for your bad credit. Prove with sufficient documents to your lender about your saving habits. Your saving account will be very helpful for you to obtain bad credit housing finance.
Do not tell your lender that the home you wish to finance will be used for temporary stay. It will make your lender being skeptical on your credit worthiness. Probably, your motive will prompt the lender charge higher interest on housing finance, or your home loan application may be rejected.
To get bad credit housing loan, you should increase your down payment by 10% of the entire loan. The larger it is, the quicker approval.
Article Source: Ezine Articles
However, there are some things you need to follow to get bad credit home finance.
Firstly, you should understand that banks or lenders favor borrowers with stable income. So, stress it to your lender that you have job stability to qualify for the finance. If you are working in an industry, emphasize your tenure of employment to your lender. Substantiate it with proper documentation like salary slip and employment experience certificate. If you have received annual merit-pay hike recently, mention it in your application form. These things collectively help offset bad credit greatly.
If you live in a rented house/flat, tell your lender that you have been regular rent payer to your landlord. Substantiate this with proper documentation including those bearing signature of your landlord. This will help your lender understand about your consistency in making payment against dues/liabilities.
If you are ignorant about your actual credit score, you should better study it carefully. It will help you understand true picture of your financial status. If the credit score is lower, you would avail home loan at higher interest rate. In addition, the credit score will help you know whether or not you can qualify for the finance.
Most lenders become skeptical at borrowers with very poor bad credit. In that case, logically explain to your lender that your bad credit is the thing of past. If your saving habit is impressive, it would be saving grace for your bad credit. Prove with sufficient documents to your lender about your saving habits. Your saving account will be very helpful for you to obtain bad credit housing finance.
Do not tell your lender that the home you wish to finance will be used for temporary stay. It will make your lender being skeptical on your credit worthiness. Probably, your motive will prompt the lender charge higher interest on housing finance, or your home loan application may be rejected.
To get bad credit housing loan, you should increase your down payment by 10% of the entire loan. The larger it is, the quicker approval.
Article Source: Ezine Articles
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