Owning a house is something that most couples want. Whether you already have children or you just got married, there’s no such thing as “late home purchase”.
With that being said, you will have enough time to save for your new home. This will be exceptionally easy if you have a good credit. But what if you don’t?
Seek for more finance companies
As much as you want to get a loan from well known banks or finance companies, having a bad credit will make that next to impossible. Most prominent companies have high standards when it comes to protecting their welfare.
In this case, it would be a brilliant idea to seek for more finance companies. Some smaller companies may grant your house loan in exchange for a higher interest rate. It may be a risk thus you have to ensure that this company is legitimate before transacting with them.
Flaunt your assets
If you just can’t find banks and finance companies that will give you a loan, showing them your assets might do the trick. If you have retirement accounts or perhaps a life insurance be sure to list them all along with their current values.
With this, you can pacify the doubts of those banks and finance companies.
Highlight job stability
If you’re working in the same company or industry for several years now, that should be stressed out to offset your bad credit history. You should also mention any wage or salary increase you got in the past years. If all these factors are listed in your home loan application, banks may possibly give you a chance.
This is an advantage to those who have been working loyally in a certain company rather than transferring from one job to another.
Increase your down payment
Although the regular down payment percentage under FHA is only 3.5%, increasing will show lenders that your bad credit was only a thing in the past. With the job stability you have and the assets you showed, paying a bigger down payment might get those banks consider your loan application.
This is also a terrific way to decrease your monthly loan payment.
If you’re planning to buy a house worth $5 million, assess yourself first. Can you honestly deal with the payment? Or is the house worth it?
Purchasing something that is more than you need and borrowing money that you know you can’t even pay will just add up to your bad credit.
Having a house is every family’s dream and nothing shall stop you from making that dream into a reality, not even a bad credit. Indeed it is a challenge to obtain a loan with such a negative record. Nevertheless there are still ways for you to deal with your bad credit. It’s just a matter of researching and applying the tips you’ve discovered.