123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Debt >> View Article

Ways To Procure A Home Loan With Bad Credit

By Author: Adam Ibrahim
Total Articles: 59

Getting a home loan with a bad credit history can be a daunting task. However, with the right approach, it is possible to improve your chances of approval. Here are a few ways to improve chances of getting your application approved.

Apply to lenders that do not use credit scoring

To begin with, there are some lenders that do not use credit scoring as one of the main criterion for eligibility. Many use a computer-based system to assess home loan application. The data collected in your application is provided a rating and if the computer identifies any red flag, your application is likely to be declined even before a real person has a chance to assess your case. However, the chances of obtaining approval for bad credit home loans from a lender who does not use credit scoring are much brighter. Your application will be assessed by a real person who will determine the reason for your past credit problems and evaluate your current financial situation and base their decision accordingly.

Avoid mortgage insurance by covering 20% of the loan

Several people who have enrolled in Australian debt recovery programs have been able to seek home loans by avoiding mortgage insurance. Approvals for home loans need to be obtained if you borrow more than 80% of the value of the property from the lender and the mortgage insurer. However, as long as you have enough funds to cover 20% of the deposit and bear the costs of stamp duty and legal fees, your application is not likely to be assessed by a mortgage insurer. This gives your application a greater chance of being approved.

Demonstrate the ability to improve your credit situation

If you have had mounting debt problems in the past, there can be nothing better than proving to lenders that your financial situation has improved. Once you demonstrate that you are back on track and are able to meet your financial commitments, you could be a step closer to procuring a home loan. Make sure you have proof of having paid not only your credit card bills and loans on time but your rent and utilities as well. Many conventional lenders may not be able to help if your credit history is very poor. However, there are specialist lenders who do offer bad credit home loans based on the element of risk. Their interest rates are usually higher, but if you can improve your credit situation, there is the possibility to opt for refinance at a lower rate.

Seek professional help

In addition, it is always prudent to seek professional advice and help fix your bad credit history. There are a number of specialist credit repair agencies who can help. There could be some adverse entries that can hurt your credit report and need to be removed immediately. When it comes to Australian debt recovery, there are several programs that may suit your needs best. Never make the mistake of settling for the first offer. Shop around for a home loan but make sure you don’t apply to several lenders. Every time you make an application, the lender will pull up your credit report, which will further impact your report. Be forthcoming with your mortgage broker and let know why you experienced credit problems so that they can be addressed appropriately with prospective lenders.


Author’s Bio:

Author is an experienced content writer with many years of experience in hand and his area of expertise is finance. He has been appreciated for his many articles published on the subject of debt management. Now he is providing information on bad credit home loans and Australian debt recovery.

Total Views: 72Word Count: 600See All articles From Author

Debt Articles

1. Understand The Background Of Renovation Loan Now
Author: Mason Cattanach

2. The Internet Loan Calculators Have Relieved From Over Excessive Interest Rates
Author: Mason Cattanach

3. Investment Loans Provide Backup For Your Business Expansion
Author: Mason Cattanach

4. You Can Thank Us Later - Reasons To Stop Thinking About Construction Loan
Author: Mason Cattanach

5. Renovation Loan Provide Aid In Rebuilding Your Home Effortlessly
Author: Mason Cattanach

6. Why Do You Need A Business Collection Agency And How To Hire One?
Author: Joan Gellers

7. How To Avoiding Bad Fashion For Men
Author: IIFD

8. Turn Your Bad Debts Into Profit
Author: Filingenie

9. Know How To Find The Best Commercial Property Loan Melbourne
Author: mohan srivastava

10. Cuanto Alquiler Coche Barato Alicante Abusa Este Renombre Ignoto
Author: Chelsea Withnell

11. Este Alquiler De Coche En Alicante Calva Aquel Picatoste Mucho
Author: Layla Claude

12. Clear Debts With Restructuring Advisory Group
Author: C.H. Brown

13. Este Alquiler Coches Aeropuerto Alicante Danzón Se Apandilla Una Total
Author: Chris Cape

14. Sin Este Alquiler De Coche En Alicante Desenalbarda Ese Alucinamiento Curco, Este Jabeque Enfada E
Author: Luther Abernathy

15. Refinance
Author: C.H. Brown

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: