Below are tried-and-tested strategies that can help boost your likelihood of being granted a suitable bad credit mortgage loan.
- Take a serious look at your personal finances. This is very important for you to check whether or not you can really afford to borrow and pay back the funds you wish to use for financing an urgent personal or household matter. Review your personal finances and consider if you have sufficient disposable income you can use for keeping up with your future payments. Then, use this information in deciding if you should push through with your plans of applying for a bad credit mortgage or to keep on waiting for a more opportune time.
- Consider the prevailing rates and terms of bad credit mortgage loans offered in the market. Then, compare them with your needs, personal preferences, and budget. In so doing, you can realize if now’s the right time for you to apply for a bad credit mortgage loan. If you think it is then, you may start approaching lenders and inquiring about the programs they extend to bad credit consumers, such as yourself. Otherwise, you may have to wait for a while until you become more stable, financially.
- Pull your credit report, as early as possible. Were you aware that your likelihood of qualifying for a mortgage loan is actually tied to your credit score? This is why we encourage our readers to pull their credit files from the three major credit bureaus, before filing an application with their target credit agencies. By doing so, you can determine what your score is and you can gauge if it would be enough for you to score an affordable financing deal. If it is then, you may start looking for subprime credit programs. But if it’s not then, you may decide to ask a close friend or relative to co-sign your credit application or to submit a huge down-payment to convince your lender to approve your loan.
- Look for firms that conduct business EXCLUSIVELY with poor or no credit consumers. After all, with these companies, you can have a greater assurance of receiving approval on your request for funds, no matter how low your credit score might be. Just be prepared to pay a steep rate of interest on your credit program. Keep in mind that this feature is often used by credit agencies to compensate for the huge risk involved in extending lines of credit to consumers with less than perfect credit standing.
- Haggle with your lender, especially if you think you can convince the officers of the firm to grant you a bad credit mortgage loan that carries a reasonable interest rate, flexible-enough payment terms and options, and a huge loanable amount. Just remember to do this in a courteous and respectful manner. Always remember that arrogance and being too-insistent can actually work to your disadvantage as they can drive your prospective lenders away. So, pay close attention to how you negotiate with your lenders. And we guarantee that in time, you can receive the lump-sum you need.