It is not yet the end of the world if you have bad credit. You can still get a mortgage or refinance even if your credit record is that bad. A bad credit mortgage is designed for individuals with bad credit, hence, it is not so bad after all. You just have to know the facts first before getting one.

How’s Your Credit?

No matter how you hide it, your credit score will still show up. Like your security number and other personal information, your credit score is stored in a databank. This is unearthed from the depths of the pile when you apply for a mortgage or loans that require information about your credit history because lenders want to know who they are dealing with.

In the case of bad credit, lender will use the information to accept or deny you loan application, or use it as a basis to calculate the interest rates on your loan or bad credit mortgage. For those who are scared of getting a mortgage or a refinance because of their bad credit, there is hope after all.

If you want to know the real score of your credit rating, check it out with Equifax Canada or TransUnion Canada. Your first credit and subsequent credits are there and you can check out if there are some errors in a bid to increase your credit rating.

If your credit record makes you squirm at the roots, then it must be very bad. A bad credit record closes the doors to loan opportunities and in some rare circumstances job applicants with bad credit are not hired! This is grossly unfair. But thanks to the new bad credit mortgage, people with bad credit can still get a mortgage or a refinance to pay off their consolidated loans.

Is a Bad Credit Mortgage for You?

No matter how awful your credit rating, you can still get a mortgage. But you must look around for professional advice if you are unsure about your chances with mortgage lenders. If you get a professional to help you sort out your finances and assess your chances, you have to be very frank about your financial situation. Only then can your chances be evaluated and this can be worked out with a willing lender.

So what is the catch? Because you are deemed high risk, a lender will charge you a higher interest rate. This may sound unfair but there is nothing you can do about this. BUT if your mortgage application is approved, this is your chance to improve your ailing credit record. So get realistic and weigh things before you take out a bad credit mortgage.

If you honestly believe you can cope with the monthly bill and still have enough to live on, then bail out from a credit mess with a consolidated mortgage via a bad credit mortgage. Currently, the running rates for this type of mortgage have never been this low, making this mortgage type attractive for people with bad credit.

Compare rates first and don’t fall for unsolicited mortgage quotes. Trust only established companies and those recommended by friends who are using the mortgage company. A mortgage, good or bad has to be paid for an agreed number of years and any default can land borrowers in a mess. Already burdened with a bad credit record, make good use of this mortgage to repair your credit score by paying your bills on time — after all, a bad credit mortgage is not bad after all.

Allegro Mortgages Corp. – Best Broker for All Your Financing Requirements
(416) 987-0008

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Category: Finances
Keywords: bad credit mortgage