The secret of getting the best home loans for people with bad credit
Mon Sep 02 15:30:00 AEST 2013
Getting a home loan with a bad credit rating
Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating.
When it comes to buying a home in Australia, having bad credit is not the end of the world.
Your future doesn't have to be defined by your bad credit.
Whether you have suffered from a bankruptcy, foreclosure or some type of financial hardship that resulted in late or missed payments, there are lenders who can provide financing for those with less-than-perfect credit.
You will likely have to produce a larger down payment and/or pay higher interest rates than someone who has good credit, but the important thing to know is that buying a home is an option for you.
In addition to correcting any inaccuracies on your credit report, it's important that you know what can help or hurt your chances of obtaining a loan.
You can start improving your credit by avoiding the temptation to apply for new credit right before submitting a mortgage application.
Pay attention to the details
It is often stated that "the devil is in the details" and with the recent developments in the downfall of the international housing market, it's easy to apply this adage to securing a bad credit mortgage.
It is vital that you pay attention to ALL of the details of your home loan, including interest rates, points, and other terms.
Do not gloss of the fine print or allow them to be simply summarised for you.
You are ultimately responsible for the repayment of the loan that you sign, not the mortgage lender.
Creative financing options
If you've exhausted all of your conventional efforts and are still turning up empty, don't give up just yet.
There may be alternative financing options suitable for your home loan needs.
This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the articles is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).