Cincinnati Mortgage Loan Credit Repair
If you have defaults on your credit report, it is very unlikely that that a lender will approve you for a loan. However, getting a mortgage loan with a default on our record is not unheard of and is entirely possible. There are many different types of mortgages that have different requirements that must be met in order to get approved. Finding a lender that specializes in dealing with borrowers who have bad credit and low credit scores may raise your chances of getting a mortgage loan even if you have defaults.
Investigate Your Credit
A mortgage expert will examine your credit file and identify certain details that relate to their requirements. Each lender will have different requirements for approving loans to people with bad credit. A mortgage advisor can help point you in the right direction of what lending companies will be able to help you in your unique credit situation. Be honest with your advisor as they will be able to help paint you in a good light to potential lenders.
Types of Defaults
It may surprise you to learn that different types of defaults will have different affects on your credit and your chances of getting approved for a mortgage loan. Not all defaults are treated equally and some may not affect you as much as you would think. The key is to find a lender that is suited to approving loans for people with similar default histories as you have. For example, if you have an unpaid gas bill that went into collections, this will have a different affect and meaning to a lender than a defaulted auto loan. Your mortgage advisor like one that we can provide will be able to help you find the right lender for your credit situation.
If you have outstanding debts and defaults, satisfying them before trying to obtain a mortgage loan may not make a huge impact. Satisfying debts will raise your credit score but having a defaulted loan does not necessarily mean you will be unable to obtain a mortgage loan. Most lenders are more concerned about the date in time at which the loan was defaulted instead of whether or not it has been paid. Some lenders will still consider you for approval even if you have outstanding defaulted loans.
Borrowing with Defaults
A borrower with a perfect credit history will be able to get approved for loans that are worth about five times their income. Achieving your maximum borrowing potential becomes clouded when you have defaults on your credit report. If you have defaults and you are approved, you might be subject to extra fees and higher interest rates.