Poor credit history is generally believed to a major stumbling block in the way of getting a home loan. The perception is – it can keep you driven of owning a house of your dream. The realization of your dream. No doubt, this is a very strong perception but the fact is: it does not present a very realistic picture. Even with a bad credit record you can approach money lenders for a home loan.
The key of success here lies in the way you approach and pursue your goal. Here are a few things which you should not forget while making moves for a home loan with a bad credit record:
Knocking at the doors of many lenders / brokers – Start on a confident note. Send your application online to many lending firms and brokers. If you do not mention your social security number, the brokers may not be able to unearth your credit record. On the basis of initial application, the lending agency will decide whether to pursue your case or not.
The chances are some brokers will tell you that your loan will not be approved by them or for that matter by anyone out in the lending market. But do not lose your heart. You will definitely receive positive responses from some quarters, from lending agencies who can devise mortgage schemes which suits your interests. That is the advantage of applying to as many brokers as possible. Even if majority of them tell you "not possible", some brokers definitely have something innovative to offer to you in the given circumstances.
Furnishing accurate information – Do not resort to the meaning of furnishing wrong information in the application like telling them an inflated level of income. While you may face problems in verifying them at a later stage, it also prolongs the process of approval.
With accurate information, it is easier for the broker to pursue your case since verification exercise will be smooth. So if you do not want the approval of your application to become complicated, stick to the rule of providing accurate information.
Perseverance is the key – You must adopt the strategy of pursuing your case on a consistent basis if you happen to be a person with poor credit record. Talk to different brokers; find out if there could be any innovative way or scheme which makes you eligible to receive a home loan. There may be moments of frustration but do not give up till the objective has been attained. Perseverance, simply, is the key in the case of those with poor credit lines.
Start searching for right seller – Sometimes this also becomes a vital cog of the process. You may come across a seller who will be willing to help you to access a scheme that will be favorable to you.
For instance, the seller may agree to uphold a minor portion of the loan or may even assist you by paying the closing costs of the deal at a rate significantly lower than the market rates. So keeping an eye on right seller is equally important.