Becoming a homeowner: Now a plausible reality for poor credit
holders
A home is not just a four-walled shelter; but for most of us
it's a long cherished dream. It's a place where you treasure
your fondest memories. You work hard each day in order to save
ample funds to purchase a home that you can call your own.
Since buying a home is a huge financial expenditure, therefore
you need to take out a mortgage to finance it. Mortgage in
simple terms is a loan that you draw to purchase a house.
However, the house will be used as security to back the
mortgage. In other words, in case you fail to pay back the
mortgage, your home will be repossessed.
Do you think your poor credit rating is going to pose as an
impediment in your way of getting a mortgage? Well, think again!
Your poor credit history will certainly not prevent you from
getting a mortgage, although it may not let you get the best
rates available.
Moreover, a recent report from Datamonitor has revealed that
banks have relaxed mortgage loan rules making it easier for
people with abysmal credit rankings to acquire mortgages. An
increased saturation in the mainstream market has led to a
number of mainstream lenders operating in the non standard
segment of lending to people with bad credit ratings. This means
that rising competition will make it a lot simpler for a lot of
people to get low rate mortgages despite their imperfect credit
backgrounds.
A number of factors are taken into consideration while deciding
the interest rate on your mortgage. These include your job
history, your income, how much adverse credit you have and how
long was it incurred. Even if the financial error was committed
not so long ago, you can still qualify for a good rate on your
mortgage. You can do so by following a few simple steps to
credit repair:
. Make sure the monthly payments on any current loans or credit
cards are paid on time. . You should make sure that your name is
on the electoral roll. . Limit the number of queries on your
credit. . Consolidate all your outstanding debts and pay them
off as soon as you can. . If you have filed for bankruptcy, then
open new accounts and start rebuilding your credit.
Even if you successfully receive a good mortgage offer, you must
first ensure your repayment ability because remember, if you
default, your home could come under serious threat.