Buying a House with a Poor Credit

Buying a House with a Poor Credit

It is true that your credit score matters when trying to secure a mortgage loan, but it is not the only requirement and you can get a low interest rate on the mortgage even with a low credit score. If you look it from the point of view of the lending institutions, they term a customer as best when he doesn’t shop around and places himself blindly in the lap of the bender. This is what usually happens when a person has a poor credit score. He feels that he is not eligible for a home loan and feels grateful to the bank which approves a home loan to him, even if the bank is charging higher rate of interest. If you have other factors in your favor, you can negotiate for a lower rate of interest just like those customers who have a good credit score.poor credit

How much loan you are seeking
A lot depends on the amount of loan you are seeking. If you are asking for a large amount, the brokers get more in terms of points they charge. If it is one percentage point, for a loan of $200000, you will be paying out $2000 and for this money they won’t let you go even if you have a bad credit score.

Difference between bad credit customers
Many customers have fears about their credit score which are baseless. Just because you failed to make a timely payment of your gas bill on time once or twice does not mean you are not entitled to a home loan. On the other hand, if you have made it a habit to delay payments of purchases made on your credit card, it may hurt you badly when you go to a bank asking for a home loan.

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