Will a poor credit history prevent me from
obtaining a mortgage?
A poor credit history, while unfortunate, does not eliminate your
ability to obtain a mortgage loan. What
it does impact is the rate that you are going to pay and the amount of
equity that you will be required to have in the property.
A few credit blemishes will raise your interest rate about 2.5
points over the current rate (if rates are currently 8.25%, then you could
expect to have an interest rate of approximately 10.75%).
If, however, your credit is severely blemished, then you could
expect another 2-4 points to be added to your interest rate. However,
you can be better prepared if you get a copy of your credit report to
review before you apply for your mortgage.
That way if there are any errors you can take steps to correct them
before you submit your application.
If
you have had credit problems, be prepared to discuss them honestly with us
and come to your application meeting with a written explanation.
At Landmark
Mortgage, we know there can be legitimate reasons for credit problems, such
as unemployment, illness or other financial difficulties.
If you've had a problem that's been corrected and your payments
have been on time, your credit will probably be considered satisfactory.
Also, what you interpret to be a credit challenge and what lending
institutions consider derogatory may be two completely different
interpretations.
Landmark Mortgage
specializes in assisting those individuals with less than perfect
credit. Whether it's a matter of
negotiating with your creditors or simply including a letter of
explanation, we can advise you on the best approach and help you get the
house of your dreams!
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