Obtaining a bad credit mortgage isn’t an easy process, but the good news is there are some steps you can take to enhance your chances of being accepted.
The aim is to make yourself seem more appealing to a lender, which means getting your finances and paperwork in order.
Take a look at your credit history
One of the first factors any lender will consider is your credit history. If you’re not sure what it looks like then now is the time to do some investigating.
If you have made improvements to your finances over the past few years then this will work in your favour. It pays to be prepared, so ensure you know what you’re presenting to your prospective lender.
Seek to improve your credit report
You might feel that your credit report isn’t going to put you in good stead for getting approved, in which case you need to start thinking of ways to make it better.
There are agencies such as Redrock that specialise in credit repair, so weigh up whether they’re likely to add any value to your quest for a bad credit home loan.
Approach a specialist lender
Some home loan providers specialise in bad credit mortgages, in which case they could be the right option for you.
There’s nothing to stop you approaching a number of different companies before deciding which fits most appropriately for your needs.
Be honest
Lenders appreciate honesty, which is why it’s important to be upfront about the state of your finances. It’s likely they will uncover the truth eventually anyway, so there’s no substitute from being candid from the start.
The figures will speak for themselves, but it’s also a good idea to be prepared for any questions that might come your way.
