Getting a Mortgage Loan With Bad Credit

A lot of us made huge life altering decisions when we were young that impact us to this day. You moved in with a hippie roommate who didn’t pay the rent in the apartment in your name. You got a credit card at 18 and bought out a department store worth of furniture. You had a new car repossessed when you couldn’t make the payments. Do any of these situations sound familiar? They all are mistakes that many of us made when we were young that are still causing us grief today. You have changed a lot since then; you grew up, pay your bills now and are ready to buy a new home. Will having bad credit leave you homeless? Should you use mortgage brokers?

Not Necessarily

If you have applied with different banks to get a mortgage loan, and have been denied, you should consult with mortgage brokers in Perth. They are able to make deals with banks and other lending institutions that a regular Australian citizen cannot get. They know the housing market and the best time to buy as well as the ever changing rates. There are a few ways that you still may be able to get the home of your dreams even if you have bad credit.

Find Someone Who Does Not Do Credit Scoring

The majority of banks and lending institutions use a system on the computer to access your loan application. If you have thousands of dollars in past due bills, this may count against you when shopping for a new home. Look for mortgage brokers that don’t do a computer assessment of your credit report. If you apply with a lender who does not use credit scoring, you will be able to meet a real live person that will access you. Instead of an automatic “no,” you can plead your case to a live human who can access every aspect of your history and is able to make an informed decision based upon your current ability to pay. Lenders that do a computer application include every financial transgression you’ve ever had without reading more into it. You could be the most response person in the world now. That should count for something.

Avoid Lenders Mortgage Insurance

If you are planning on buying a house, have the capital to cover a 20 percent deposit, stamp duty as well as other fees. Have this fee to give you your mortgage brokers and avoid having someone go over your application. You have a much higher chance of being approved with a larger start up investment.