By financen | October 22, 2018 - 3:47 pm - Posted in Bad Credit, Home Loan, Home loans
Home loan

Home loan

If you’ve got bad credit but you want to get a home loan, you may be worried about your options. Don’t panic – having bad credit doesn’t mean you can’t get a home loan. Just follow these top tips and see how things go.

Time your home loan application

Most lenders will be wary about lending money to you for a home loan if you have just been declared bankrupt or recently discharged from bankruptcy. You need to wait until your financial situation is as stable as possible before you apply for a home loan. Try to time your home loan application for when you have a stable address and can show evidence of a regular income.

Get a larger deposit

Having a larger deposit or down payment for your home loan means that you’ll need to borrow less money from the lender. This reassures the lender that you are less of a risk to them, and it can also reduce the amount of money you pay overall in interest and additional fees.

Get a guarantor

If you have a very close friend or relative who is able to act as a guarantor, you may be able to get a home loan with bad credit. Make sure that your guarantor is 100% comfortable with the position though and ensure that they have the funds to pay back the home loan if you default on your repayments.

Work with a bad credit specialist

Finding the right home loan provider is a huge step to getting a home loan with bad credit. Find a lender who works with people with bad credit to avoid applying to lenders who may automatically reject you on account of you having bad credit.

Show proof of repaid loans or financial stability

If you have bad credit, it may not necessarily mean that you are financially unstable. If you have proof of repaid loans or bills that have been paid on time, show these to your lender to reassure them that you are a responsible borrower and will be able to pay back your home loan.

Borrow less

If your credit is bad and you’re looking for a loan for a large home, you may need to considering borrowing less and downsizing on the property that you’re after. This could also mean that you’re under less financial strain to make large repayments that could cause you stress.

Budget properly

Always be realistic about how you will be able to afford your repayments. It’s easy to get carried away with a home loan when you’re tempted by finding your dream home but budget properly and make sure that you’ll be able to repay your loan. Failing to repay what you owe could result in you damaging your credit further.

This entry was posted on Monday, October 22nd, 2018 at 3:47 pm and is filed under Bad Credit, Home Loan, Home loans. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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