by Jacques Poujade
We all know to be grateful for the roof over our heads. Being able to have a place to go home to after a long day is one of the most vital necessities. I understand this well. With over thirty years in the financial services industry, I know that certain situations can affect financial circumstances. In turn, these circumstances can lead to difficulties obtaining basic necessities, like obtaining a mortgage.
Applying for a mortgage is one of the first steps in buying a new home. Unfortunately, for many, this can be a difficult or even impossible process with bad credit. Don’t let poor credit stress you into thinking that you don’t deserve to be a homeowner! With the proper preparation and research, you can have a home to call yours in no time.
Alwyas know that you have options. While having bad credit can make you feel restricted in moments of big financial decisions, there are a lot of people in your same shoes and the choices to allow for that. By researching and understanding your options, you are on the right path to finding what is best for you and your financial future.
Know that the home buying process won’t happen overnight. In fact, you might find slowing the process down to feel better prepared. While there are options available to those with poor credit, they often include higher interest rates, higher deposits, or other stipulations. Keep in mind that this is something that you should prepare for. Ensure that your financial situation is strong enough to where you can handle this extra weight. If not, consider slowing the process down to allow you to prepare better.
Get A Cosigner
Getting a cosigner can help lower your payments. It’s a common practice and one that many of us have used in the past. With the trust of another on your side, banks and lending companies can be more comfortable providing the money for our mortgage. Sometimes, this will even lower your payments. Keep in mind, any faults made can fall on this cosigner, so ensure you’re prepared to
Weigh Your Options
If you’re confident in your financial situation and what it takes to have a mortgage, applying for one despite poor credit might be a great idea! However, it’s still important to consider every option. One thing to consider is renting while you improve your credit in an effort to get a better rate. You can do this by paying off debts or saving a larger down payment.
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Bad credit can often be seen as a death sentence to big financial changes, like buying a home. Fortunately, that’s not always the case, but it’s important to weigh all of your options. With my three decades of experience working in the financial industries and as Managing Partner at LendPlus, I know that the importance is in the prep. With the right preparation, you can buy a home no matter what your financial situation looks like right now.
Get more practical real estate and finance tips by following my blog at http://jacquespoujade.wordpress.com/. You can also know more about LendPlus by visiting LendPlus.com.