What to Do When You Can't Get a Mortgage
Being turned down for a mortgage can be a humiliating and sometimes devastating experience. Hearing that you have bad credit and it has ruined your chances to work with traditional lenders is not the end of the line, however, you may qualify for a bad credit mortgage that can help you get financing you need, whether it's a 2nd mortgage or mortgage refinancing.
Taking the Right Steps
We know it may seem like the end of the world, but when you can’t get a mortgage, there are always steps and options for you to consider. Here are a few things that you can do so that you can get the financing you need.
- Obtain a copy of your credit report. This way you know what’s exactly damaging your credit and how you can improve it so it’s easier for you to obtain a mortgage or anything else that would require a credit check.
- Know how much your primary mortgage is worth. That way, when you go to get your mortgage or refinance it, you can show that you are a secure investment.
- Be sure you understand your credit score also depends on the type and how much credit you have available, how many applications for credit you've made and how much and how long you keep balances on your available credit.
- Maintain steady employment. With the current economy, borrowing money is more difficult than ever and if you do not have steady employment, most financial institutions will not take a risk and give you a mortgage. You need to show that you can pay back the money borrowed.
- Reduce the amount of debt you are carrying. If you are trying to repair your credit, you might consider applying for a bad credit 2nd mortgage or mortgage refinancing to consolidate your debts and possibly lower your monthly payments. For this to successfully repair your credit, you would have to make sure not to incur further debt on your credit cards once they've been paid off.
There you have it, a few steps to help you on your journey to get yourself a mortgage, but if you find yourself needing help on the way, here at BMC Mortgage & Investments, we have many experienced mortgage brokers, who have helped people with bad credit in Edmonton and around Alberta get mortgages. Contact us today and a member of our team will be happy to help you.