10 Tips To Getting A Bad Credit Mortgage

So you have found the perfect house, but now you are worried about being able to secure a mortgage for it because of your credit. Stop worrying. You can apply for a bad credit mortgage that will help you get the home you want.

Going to a mortgage broker prepared is key to making this transaction quick and easy, so here are ten tips for you to use to get your bad credit mortgage quickly, efficiently, and with as little hassle as possible.

 

1. Have all of your documentation at hand when you apply for your mortgage.
Call the mortgage broker ahead of time and ask them for a list of all of the documentation you will need for your mortgage application. Having all of it at hand will help you fill out the application quicker and will allow you to get an approval faster.


2. In addition to the paperwork you need, have a list of everything you owe your creditors.
Knowing how much you owe your creditors, who you owe, and the information on the accounts, defaults, and CCJs registered against you will help speed up the application process. Additionally, if you are on a debt management plan you need to have a current debt statement from them.


3. Bring your last 12 months mortgage or rental statement with you.
This will help the mortgage broker see where you have had problems and allow them to get the best deal for you. For example, if you are laid off of work during the winter, the mortgage broker could arrange a lesser payment for you during those months.


4. Use a bad credit mortgage broker.
These people are professionals in the field and they understand how the industry works. They also know the lenders and the products they offer as well as any special offers that may be taking place when you apply for a loan.


5. Be honest with your mortgage broker.
You are trying to get a house. Plus they are going to see everything regarding your finances anyway. There is no reason to hide or lie about your information. In fact, your explanation of financial difficulties may actually help you get the loan


6. Be honest with yourself.
Can you really afford the repayments on the home you want to buy? You need to be realistic about your finances and whether or not this is the right thing to do.
7. When asked for documentation, get it to the lender as soon as possible.
The longer you take to provide your mortgage broker or potential lender the information they ask for, the longer it will take to get your mortgage loan approved.


8. Make sure you hire a solicitor.
You want to use a solicitor that is versed in bad credit mortgages  and work on a ‘no completion no fee' basis. If your mortgage does not get approved and you do not close on the house, you do not owe the solicitor any money.

9. Always request settlement figures from your current mortgage lender.
Sometimes the mortgage broker will do this for you, but it's important that you have the right settlement figure for your old mortgage loan and that you get it as soon as possible during the new mortgage loan application process. You never want to guess on what you owe.


10. Remain calm and patient during the process.
There is no sense in getting stressed out over applying for a bad credit mortgage. Your mortgage broker will do everything in their power to help you get the loan. It is easier to deal with any issues that arise with a clear and level head than with a panicked one.




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