If you have tried to get a bruised credit mortgage, then you know how difficult it can be. Banks will turn you away for your mortgage if your credit is not up to their strict credit requirements, leaving you to find a mortgage lender that specializes in obtaining a bruise credit mortgage. Luckily for you, this is where our team at Brampton Mortgage Broker excels, and we can help you get the mortgage you need for your purchase or refinance even with your bruised credit situation. Over the years we have approved hundreds of mortgages for clients and have developed the mortgage know how to get the job done. Our team has put this post together for you so you can gain a detailed understanding of what a bruised credit mortgage is and what it takes to get your mortgage approved.
What is a Bruised Credit Mortgage?
A bruised credit mortgage is essentially another term for a bad credit mortgage that has a slightly lowered credit score, with minor credit issues. As opposed to a very bad credit situation where your Equifax credit score is between 300 to 550. Generally speaking, bruised credit can be classified as an Equifax credit score that falls into a fair credit range of 550 to 670. Typically, clients with an Equifax credit score in the fair range of 550 to 670 have some type of credit issues but these credit issues are not a serious enough issue to decline you a bruise credit mortgage.
Not to worry, our team at Brampton Mortgage Broker specializes in getting mortgages for all situations even if your credit score is in the fair credit score rating. We have developed a large network of mortgage lenders with who we are able to leverage and get you the bruised credit mortgage approval you deserve. Our team will represent you in the best light possible, even if you have issues with your credit. We work with you to fully understand the reason why you have bruised credit and get to the root of what caused it. By gathering this information, we are able to demonstrate to our network of mortgage lenders that even though you have some minor issues with your credit, you are more than capable of making monthly mortgage payments and are qualified to receive mortgage approval.
What Causes Credit to Become Bruised?
This is such an important point to cover so you can fully understand the scope of bruised credit and how to overcome it. It’s no secret that having a credit score that is below a good or excellent rating can have a strong impact on your financial situation. It is not a secret that bad credit results in higher rates, higher monthly payments compared to those who have good to excellent credit. Although, this is the truth when it comes to getting a mortgage with lower credit score rating, our team has helped many of our clients secure a bruised credit mortgage with a great rate and low affordable monthly payments. With
Here are many factors that can cause your credit to become bruised, let’s take a quick look at some of these factors in point form.
- Circumstances out of your control
- Unexpected expenses
- Emergencies requiring immediate cash
- Borrowing more money that you can pay back
- Taking out too many loans
- Investments gone bad
- Late payments
- Bad credit that is being repaired
- Errors in the reporting of your credit report
Our team understands that trying to maintain your credit score while life will unexpectedly throw itself at you with circumstances that cause you to take immediate action, will have a significant impact on your credit score. Although you can not control what originally caused your credit to become bruised, our team, however, can understand what caused you to have bruised credit and work with you to make a plan that will help you prevent it from happening again.
Benefits of Getting a Bruised Credit Mortgage
Now that you understand what causes you to have bruised credit and what it takes to get a mortgage around your credit is bruised, lets take a moment to understand what the benefits of getting a bruised credit mortgage are. Here is a list of some of the benefits our clients have been able to enjoy with a mortgage arranged by our team for their bruised credit.
- Great mortgage rate
- Low affordable monthly payments
- Pay off debts and loans
- Consolidate debt payments into one monthly payment
- Helps with repairing your credit score
- Accessing cash from equity for unseen expenses
- Paying off a consumer proposal
As you can see from the list of benefits that a mortgage for bruised credit offers, getting a bruised credit mortgage is a great option to explore. You can rest assured that our team is always ready to help you with getting you a mortgage for your bruised credit situation so, you can start to enjoy the listed benefit above for yourself.
The Types of Bruised Credit Mortgage
There is no need to stress yourself out if you think there are limited mortgage options for you if you have bruised credit. In reality that is not the case, banks are not the only place where you can go to get a mortgage, you can always work with a mortgage broker. Our team of mortgages brokers at Brampton Mortgage Broker will open the doors of mortgage financing possibilities for our clients with bruised credit. We provide our clients with the right mortgage options for their bruised credit mortgage. Below are the available types of mortgages available for bruised credit clients we provide.
- Purchasing a Home: Depending on how bruised your credit score is you will need a down payment anywhere between 20% to 25% of the appraised value. For a home purchase, it is important to note that your credit score will have an impact on the interest rate you will receive but it doesn’t impact your overall mortgage approval for a home purchase.
- Mortgage Refinance: You will be able to refinance your mortgage up to 80% of your home’s appraised value. Your credit score does not make a difference in your approval for a mortgage refinance. However, your credit score will impact the rate of interest you will be able to receive.
- Second Mortgage: Based on the appraised value of your home you will be able to get a second mortgage placed in the second position behind your first mortgage up to 85% of the appraised value. It is important to know your credit situation does not impact your chances of approval for a second mortgage.
- Home Equity Loan: Based on the available equity you have in your home you will be able to get a home equity loan. Your credit score does not matter, and your approval is based on the appraisal value and available equity. Home equity lenders will approve a loan up to 85% of the appraised value minus any mortgage on the property.
- Debt Consolidation Mortgage: You can take all your outstanding debts and roll them into one single mortgage payment. If the debt consolidation mortgage you are requesting is within 85% of your home’s appraised value minus the existing mortgage balance you already have in place. A debt consolidation mortgage does not require a minimum credit score for your approval, but your credit score could play a role in the interest rate you will be able to receive. A debt consolidation mortgage can help you with lowering your monthly expenses and saving money as the overall interest rate will be lower than your individual debts carry.
- Private Mortgage: Based on the appraised value of the property, you can get a private mortgage up to 80% of the value. Your credit score may or not play a role in the interest rate, but the location of the property and appraisal report will impact your approval for a private mortgage.
It just goes to show the types of bruised credit mortgage options are wide-ranging. So, if you are looking to purchase a home or looking to refinance your mortgage and you have bruised credit our team can help find you a mortgage with a great rate and low affordable monthly payments. Don’t let bad credit ruin your life, you can take back control and it all starts with contacting us to get your bruised credit mortgage approved. To get started on your mortgage approval fill in the online form so we can reach out to you and find you the best mortgage option that will work for your bruised credit mortgage situation.