My Virtual Log Book

The first and the foremost question which arises is why to go for a bad credit mortgage? Now, to some it may (and it usually does) seem like a ‘bad’ idea, however, one must not forget that no matter how many statistical tools the institutions may use to evaluate your credit value, they never take into consideration (or never bother to take into consideration) your future pretax verity. If for some reason you have been turned down for a mortgage, don’t be disheartened as there most certainly is a bad credit mortgage out there which suits you need. The only question you need to ask yourself is whether or not it’ll put extra strain on your financial conditions. If the answer to that is yes, then you most certainly should not go for it.

Having said that, to find such a mortgage plan, here is the 3 step action plan that you may want to follow.

One- You will need to find an independent mortgage broker who deals in bad credit mortgages. It is of utmost importance as he/she will help you prevent even more rejections which will ultimately lead to worsening your credit rating. Also, he/she will have experience in bad credit mortgages, thereby helping you find the correct path for your financial situation.

Two- You must be honest with the broker no matter how awkward or embarrassing it is. Remember, he has heard and dealt with much worse cases and there is no reason to be ashamed of. He/she cannot help you if you don’t give him complete details. Its only after he knows your entire financial history can he advise you to a mortgage lender who will accept you.

Three- Remember, the broker is an independent party and you are his client. His advices are for your benefit and thus listen to it very carefully. If he projects that you have set yourself unrealistic targets, then you need to recalculate your priorities and be more realistic.

Thus to sum it up, don’t give up if you don’t get accepted the first time. Stop right there and avoid worsening your credit rating. There most certainly is a lender out there who’ll accept you, however you need a broker to find it.

Filed under: Credit, Financial Planning, Mortgage, Personal Finance, Taxes, Understanding Finances