Getting home loan approval could be a long and exhausting process. Many factors including your income stability, existing loans and monthly outflows, and even your educational qualification affect your eligibility of getting a home loan. Besides these, credit score is one of the determining factors when it comes to your loan approval. Although banks and lenders may not factor in your credit score in case of a VA loan and other special types of loan, if they do, it might delay the loan approval process and make it more difficult. If you have a bad credit score, this post will give you four ways to get a home loan with a bad credit score. Read on. 1. Negotiate the Rate Individuals with a bad credit score tend get loan approval at a high interest rate. Your need for a loan determines whether you will accept the interest rate or not. You can either convince the lender to grant you a loan at a higher interest rate or for a shorter tenure or leverage a healthy credit history to negotiate the interest rate and the tenure. 2. Add a Guarantor One way to get approval for a home loan is by introducing a personal guarantor. If you have a guarantor who has a healthy credit score, a lender may be inclined to approve your home loan, despite your bad credit score. A guarantor can be anyone from your friends or family to a financing firm. 3. Leverage a Clean Track of Repayment A clean track record of repayment of other existing loans can help a great deal in getting the home loan. Many banks offer pre-approved loans if you have a clean track loan repayment history. In the same way, if you have been repaying your other loans or dues on time and can display a clean track record, you can use this as a leverage to request for a higher home loan amount. 4. Offer Interim Security A bank or lender approves your home loan based on the type of property you buy and that property acts as a primary security. If you have a bad credit score, yet want to increase the loan amount, you can offer another asset as an additional interim security. Loan and Mortgage Experts in Texas Getting home loan on a bad credit score can be a difficult task for anyone. The four ways mentioned in this blog post may help you get an approval on your home loan sooner, and with lesser hassles. If you are looking for a home loan in Texas or nearby areas, you will find trusted loan and mortgage experts and firms such as Service First Mortgage - The Davidson Group, who will help you get any type of loans from simple home loans to VA home loans, even with a bad credit score.
1 Comment
9/16/2017 06:37:00 am
I really enjoy reading and also appreciate your work.
Reply
Leave a Reply. |
AuthorDarrick encourages readers to post issues that need immediate attention in terms of home buying; such interactions will enhance reader engagement and provide a road-map for others Archives
November 2017
Categories |