Purchasing a home is one of the best ways that you can start to build wealth, as home values in Brampton have been steadily on the rise over the past several years. Finding a lender who will give you a mortgage can prove challenging if you have bad credit. Not to worry, though; our team at Brampton Mortgage Broker has put together this short and easy-to-read article to help you with some tips you can use to improve your chances of getting a mortgage in Brampton, even if you have bad credit. If you have questions after giving this a read, feel free to reach out and get in touch with our team so we can answer any questions you may have. We are always here to help; now, let’s get into the article.
5 tips you can use to get a mortgage in Brampton with bad credit:
1. When purchasing a home, you must have heard by now that all you will need is a 5% down payment. Although this is true, this will not apply to you if you have bad credit. If you have bad credit, getting a mortgage for a home purchase will require you to save up for a larger down payment. You will need to have a down payment of 20% or even more in some cases if you have really bad credit. If you are unsure exactly how much of a down payment you will need for your situation due to your bad credit, you don’t need to stress out; you can always reach out to our team. We can examine your credit situation in more detail and help determine how much of a down payment you will need. Just remember, having bad credit doesn’t mean you won’t be able to purchase a home. It means you will need to come up with more than just the minimum requirements.
2. It is no secret that the major banks and credit unions will most likely not be willing to give you a mortgage if you have bad credit. This means that you will need to consider alternative mortgage lenders on the market to help get your mortgage approved. To get access to these alternative lenders, you will need to work with a licensed mortgage broker, and our team at Brampton Mortgage Broker is licensed to help find the suitable alternative mortgage lender. These alternative lenders can act as steppingstones helping to give you the time needed to help repair, fix and heal your credit so that you can transition to a major bank or credit union. However, this may take a year or two, depending on how bad your credit situation is. This will allow you ample time to address all your credit issues and get back on track with your credit score once and for all. Our team has helped hundreds of clients, and we can also help you create a plan to address all your credit problems and put you back on the right side of your credit score, where you belong. We know what it takes to help fix bad credit, and we understand how to create a plan that will work for you so we can move your mortgage from an alternative lender to a major bank or credit union.
3. Getting help with a co-signer can help you get a mortgage approved from a major bank or credit union, even with bad credit. Depending on your credit score, you may want to consider getting a co-signer to help improve your chances of getting a mortgage. To strengthen your mortgage approval when you have bad credit, your co-signer will need good to excellent credit and will be responsible for making any payments themselves if you cannot. However, and this is very important to make a note of, if your credit score is really bad, then even with the help of a co-signer, you may not still be able to get approved from a major bank or credit union. But this is where our team can help you understand if a co-signer will work for your situation. We can help determine if adding on a co-signer can help your chances of getting a mortgage with a major bank or credit union. We have years of experience working with clients utilizing co-signers for their mortgage, and we can help make sure the co-signer is the right fit for your situation.
4. Don’t add on more debt. This needs to go without saying and avoid going further into debt. Yes, you are going to get offers from credit card companies to get a new credit card or get an amazing price and deal on a car on a regular basis. This is their business; they want to sell you something, but you must be disciplined. Taking on too much debt can cause a lot of damage to your credit score and is not worth it at the end. Especially if you are in the process of buying a home and are looking to get a mortgage with bad credit, then you need to avoid taking on more debt. You don’t want your credit score getting worse or increasing your debt when you already have bad credit. Instead, you will want to do the opposite and pay off as much of your debt as possible, so you can help increase your credit score. It is important to note that even if you don’t have bad credit, taking on too much debt can cause damage to your credit score, and if you’re not careful, you can end up with bad credit before you know it, and our team has seen it happened to clients one too many times. But this is where we have helped our clients with understanding how to manage debt. If you are struggling with managing your debt, we have tools in place that can help you. Contact us today so our team can help put a plan in place that works for your situation and help clean up your debit and credit.
5. Working with a Mortgage Broker is your best option if you have bad credit. Working with a Mortgage Broker will give you many options given your bad credit situation. Mortgage Brokers work with a wide range of specialist lenders and can help you find the right bad credit lender. But how do you find the right Mortgage Broker to work with? While looking for a mortgage in Brampton, hundreds of clients have chosen to work with our team at Brampton Mortgage Broker and have referred their friends and family to work with us as well. With so many 5-star Google reviews left by our clients, you can read about all the wonderful and amazing experiences our clients have had working with us to help get their mortgage approved. We are always here to help all of our new and returning clients with their mortgage approval, and we are happy to help you with your situation.
How much will a bad credit mortgage in Brampton cost me?
If you are looking to get a mortgage with bad credit, then it is very important to understand that in the beginning, you will be paying higher interest rates than someone with good credit. Unfortunately, that is the reality of the situation, but the extra cost, however, may be well worth it if it helps get you into a home of your own.
Current rates for alternative lenders (if you have a credit score of 550-700) are between 3%-5%, while rates for private lenders (if you have a credit score of less than 600) can range between 6% and 12%.
Final thoughts on Bad Credit Mortgage in Brampton
If you are looking for a bad credit mortgage in Brampton, contact our team at Brampton Mortgage Broker. Our team will help you explore your mortgage options and find the best fit for your situation. To explore your options, call or apply online today! Our team at Brampton Mortgage Broker has years of experience and many success stories of the clients we have helped over the years. You can count on our team to help in any way to get your bad credit mortgage in Brampton.