3 Misconceptions About Bad Credit Mortgage Brokers
Many people believe that obtaining pre-approval for a mortgage with bad credit is impossible. While having blemishes on your credit report can certainly make purchasing a new home more challenging, working with a bad credit mortgage broker can help improve your chances of approval. Below, we'll look at three common myths about working with a bad credit mortgage broker, and why they're untrue.
Misconception #1: You Can't Secure Home Financing with Bad Credit
A common misconception is that you can't be approved for a mortgage if you have negative information in your credit file, such as defaulted loans or judgments. While this may be the case when applying for traditional home loans, there are alternative solutions for people who don't meet the borrowing criteria of banks and other traditional lenders. A bad credit mortgage broker maintains professional relationships with banks, credit unions, private lenders, and other financial institutions, and has access to loan products that aren't available to the general public. Rest assured, your bad credit mortgage broker has the knowledge and experience to help you get approved for home financing, regardless of your credit history.
Misconception #2: Working with a Bad Credit Mortgage Broker Will Negatively Affect Your Credit Score
Many people assume that working with a mortgage broker will result in too many "hits" on their credit report, thus negatively impacting their credit score. While its true that your bad credit mortgage broker will be applying to numerous lenders for financing, you don't have to worry about your credit rating being destroyed. this is because your bad credit mortgage broker will only need to access your credit report once -- and in most cases, the credit report doesn't even get pulled until you're ready to secure your financing.
Misconception #3: Bad Credit Mortgages have High Interest Rates and Difficult Repayment
There is a widespread assumption that the term "bad credit mortgage" means high interest rates and unforgiving repayment terms. This is not necessarily true. Many bad credit mortgages have reasonable interest rates and flexible repayment terms. Furthermore, you can always refinance your mortgage later to take advantage of lower interest rates.
Obtaining home financing when you have blemishes on your credit report doesn't have to be difficult. Contact us today to learn more about how a bad credit mortgage broker can help you secure the financing you need.