Just because you have bad credit from the standpoint of the traditional financial industry does not mean that you cannot get a mortgage whenever you want. AS a matter of fact, the harder that you look, the more effective you will be in finding the right mortgage for you without having to deal with the traditional banking structure.
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Here are some of the ways that you may be able to leverage your other assets and credit history in order to get the mortgage deal from a finance company that understands your needs right now.
– Make sure that you have a line to financial options that are not on the traditional line.
The traditional financial structure has to go through the traditional credit structure. This means that your FICO score will probably be under the microscope. However, you may not know that the FICO score is only type of credit score that you have. Even if your FICO score is not necessarily where you want it to be, you still have the ability to show your financial stability in other ways. If you do not know any of these methods, then you may want to check with a reputable local accountant so that you can find other ways to show a financial institution that you are a low risk financial loan option.
Once you have a line on the alternative methods in your corner for proving your financial viability, you can get the attention of a reputable financial institution. There is no reason that you have to create more hurdles for yourself by trying to fix your FICO score if you have the right financial structure outside of that.
– Make sure that you are not being charged for the mistakes of other people.
Even if you do not plan to justify your financial bona fides through your FICO score, you can still raise the probability that can get a traditional loan by simply checking your credit reports. The major three credit reporting agencies are well known for making this takes on these reports, and there is no way determine a mistake from a legitimate claim if you do not take a hard look at the credit reports personally.
Most financial advisors will try to make sure that you check your credit report at least once every can get your credit report for free from each of the credit rating agencies once per year. This should be more than enough to make sure that you are as financially stable as you can be no matter what methodology you use to try to get a mortgage for yourself.
– Do you have any cosigners for your mortgage?
One of the easiest ways to get lenders to trust you if you have bad credit is to line up cosigners. Cosigners will be on the legally if you default on your payment, so make sure that you do this in good faith. Cosigning on alone is not a small matter; many people have had friendships and family fights because the cosigner ended up being responsible for the mortgage.
In order to avoid these fights, make sure that the terms for your cosigner are set in stone with a written contract before you walk into a bank. This will be the best way to preserve any friendships if something goes wrong during the mortgage.
– Show the financial institution instances of previous large asset purchases.
If you have a previous mortgage, this will work in your favor if you are trying to get a loan for a mortgage currently. You can also use the credit that you have on large asset purchases such as cars or investment artwork. As a matter of fact, you may be able to negotiate a secured loan if you have large assets that are worth enough money. Assets with equity are a great way to expand your financial options without having to dig yourself any deeper into debt or deal with the major credit rating agencies.
– Simply get a smaller property.
If none of the above methods work, you may be able to find your way into a mortgage if you simply get a smaller property. You may have to look a little bit harder in order to find a sale, but there are plenty of sales around from distressed properties and properties that are underwater.
Even if a bank rejects you for an initial loan, you can ask them for the real estate that they have on file. Most banks are not looking to hold onto distressed properties. They want to get them out of their books as soon as possible. In order to get rid of these distressed properties, a bank may consider doing a joint loan with another bank that you have a good long term relationship with.