In days past, if you had a less than perfect credit rating it usually meant that someone was irresponsible or simply unethical in how they handled debt. Today, many hard working people have less than perfect credit due to a number of reasons not all of which are under their control.
At the same time, banks are being much pickier about whom they lend money to and that means that the credit ratings required to get loans are higher than ever. Finding a mortgage lender that can help you if you have less than ideal credit will require that you accept a couple of things.
You May Pay Higher Interest Rates
Credit ratings improve when you’ve been on time with payments for a while and when you’re re-established that you’re not an extreme risk to creditors. One way of doing this is to take out a high interest loan for a while and, when you’ve been paying on it regularly, to re-apply for a better loan.
Higher Down Payments
Another effect of having weak credit is that you may have to come up with more money for your down payment on your loan. This does have some advantages, however. Principally, it lessens the amount that you have to pay interest on and that means that your home is more affordable from the start.
Everyone needs mortgage insurance for higher LTV loans. However the amount and rate of mortgage insurance may increase if your credit isn’t so good and this will have to be factored into the loan. A good mortgage broker that helps people with less than perfect credit can make sure that you understand this insurance and can make sure that you don’t end up overpaying for it. This insurance may well be the only reason that you’re even able to finance a home, so don’t be put off by the additional cost that it adds to the purchase price.
A good mortgage broker that helps people with less than perfect credit can find most anyone an affordable, valuable loan that will make a home a realistic option for them. And at NOLA Lending, we take pride in serving the needs of our customers so that you get Your Loan, Your Way!