When you have bad credit getting a mortgage can be extremely difficult, but with the right mortgage lender you’re going to be able to find one that works. There’s nothing worse than finding a home and going to the negotiating table, only to find out that you don’t have the money you need to buy the house. Here we’re going to go over the pre-approval process, bad credit mortgage lenders and everything else you’re going to need to know to be successful. Let’s get started!
Do You Have Bad Credit?
The first thing you have to ask yourself is… do you have bad credit? Bad credit happens to everyone, but not all “bad credit” is actually bad. Think about it this way: if your FICO score is below 600, you could be in trouble. It will always come down to who your mortgage lender is and what their criteria are. If you’re working with someone who specializes in bad credit second mortgages you’ll have a much better chance regardless of your credit history. They’ll rely much more on the equity over your home than they do in how much credit you have available. If your credit score falls below the line, even a lender that specializes in bad credit second mortgages may be difficult to deal with.
Do You Need Money Quickly?
The great thing about equity is that it’s there when you need it to be. Different mortgage lenders will want to tap into it, and you’ll have something that you can leverage against a lender. They’ll compete to get your business and you’ll be able to pay it off as fast or as slowly as you need. There are fixed rate mortgages that work great over long periods of time and variable rate mortgages that work good for the short term.
Pay Off Your First Mortgage or Debts
Paying off your first mortgage or big debts will give you more flexibility. Make sure that your bad credit second mortgage will give you a better interest rate than the ones that you’re trading off with. When you choose us as your Toronto mortgage broker, you’ll be able to have a fresh pair of eyes help you look over the information. We’ll help you know if this is really the right decision for you, if you’re going to be able to save money by taking out more debt.
If you really want to find lenders with bad credit second mortgages, you’re going to need to work with us! A Toronto mortgage broker will know everyone in the area who offers these kinds of mortgages, and we’ll also be able to help you accurately gauge your situation.