Which Mortgage Lender is Good for Bad Credit?

bad credit mortgagesThere are two types of mortgage lenders, but which is right for you when your credit is less than perfect? Unless you consult with a mortgage broker, you may never know! Here we’re going to talk about mortgage brokers; be they conventional or alternative, there’s always a financing solution out there waiting for you. Don’t let bad credit be a road block to getting a good deal!

What Exactly is Bad Credit?

Bad credit can be different things to different people, so let’s put it into perspective: a score of “600” is considered average. Most people really land around the 550 mark, and some land around 500 who’ve had a little trouble. A score of “800” is considered the best you can have, but very few people ever have this kind of credit. So if you have “600” or better, you’re in good shape to get a mortgage from just about any lender.

If your score falls below this, you may want to consider credit repair or debt consolidation. You shouldn’t have to take a worse rate just because your credit sucks. You should be able to get everything you need from a mortgage broker. They can first tell you what you need to do to improve your credit. They’ll go over your finances and help you know if you’re equipped to get a mortgage now or if you should save up a little more.

What Are the Differences Between Mortgage Lenders?

 There are two main types of mortgage lenders: conventional and alternative. Conventional mortgage lenders will help you get the money you need to buy a home or refinance your current mortgage, but they want people who have good to great credit to borrow from them. While many will give mortgages to people who don’t have good credit, they’ll take it out in interest and make it not worth pursuing.

Alternative financing with private mortgage lenders is easy.  Instead of borrowing from a bank, you’ll be borrowing from lending companies or private individuals who give these types of loans. With an alternative lender you won’t have to worry so much about your credit score as you will your credit history.

 If you wander too far out of the 500 credit range, you’ll still need credit repair with these kinds of loans. You’re going to want to raise your score by 50 points over a few months (this is totally doable), and you’ll be able to use this as leverage to get a good loan.

Which is Right for You?

Each case is different and you’ll want to talk to a Toronto mortgage broker to find out which one will be right for you. Some people with great credit may find that a private mortgage will give them a better deal, and others with average to bad credit could get a great deal with a conventional lender. No matter what you do, make sure you have a mortgage broker working with you.

To learn more about our great rates on bad credit mortgages, click here:

Three Reasons to Check Out Bad Credit Second Mortgages

bad credit mortgagesWhen 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. 

Bad Credit Mortgages Can Help You Get Into a Home Today!

bad credit mortgagesIf you have bad credit, you know how hard it can be to get the credit you need to buy a home or refinance one you own. All you need to do is find a good mortgage with a Toronto mortgage broker and you’ll be able to make your home dreams into reality, but you’ll need to make sure that you’re working with the right lenders! Lenders are what make all the difference in this kind of a deal! You’ll want someone who understands your situation and won’t judge you for a few mistakes ages ago that don’t reflect who you are today.

What Kind of Credit do You Have?

Almost no one has “good credit”, but it’s important to remember that everyone has different definitions for good and bad credit. If you want to know a range that you have to watch out for, it’s going to be the 600+ FICO score range. Anything above a 600 is considered nominal to great, but anything below that is considered a red flag. You’ll want to talk to a Toronto mortgage broker before you proceed to know what kind of chances you have and which kind of lender will be right for you.

What Lenders Give Bad Credit Mortgages?

Almost every kind of lender gives out this kind of mortgage, but you’re going to want to make sure that you choose the right one for you. Some mortgage brokers will tell you to look at private mortgage lenders, others will tell you to lean more towards conventional mortgages.  Whatever you do, you’re going to want to talk to many different lenders before you decide on the one that will lend you the money. They’re going to have to offer you one heck of a deal before you just sign up with them.

Know Who You’re Dealing With

Knowing what lender you’re dealing with will help you avoid any problems in the future. When you work with a Toronto mortgage broker you’ll be able to avoid the worst lenders in the area. They will know who has and doesn’t have a good reputation. The problem with these kinds of lenders is that they’re only interested in short term profits and not long term relationships. If you choose the wrong lender you could lose out on good interest rates, lose your money and even worse lose your home.  Don’t let this happen to you, know who you’re dealing with before you sign on for a bad credit mortgage.

Can You Save Money with a Bad Credit Mortgage?

If you get a mortgage that is especially formulated for people with bad credit, it can save you thousands if not more over the life of your loan. You want a lender who isn’t going to penalize you for mistakes in the past. This is why you want to make sure you’re working with the right Toronto mortgage broker before you start shopping for a loan.