The thought of buying a new home brings with both excitement and anxiety for first time home buyers. Most people are excited to feel pride of ownership, and anxious because of lack of experience and knowledge with the procedure.
Journey down Home Buying Lane
When the buyers have poor credit, this is cause for much more anxiety.
If you are a home buyer with poor credit it’s best to familiarize yourself with the process as much as possible. Talk to friends, family and co-workers to learn more about this topic.
Follow our guidelines below to ensure your home purchase is a success:
- Make a fat Down payment -Mortgage lenders always love a significant down payment. So, try to pull some money and build-up an amount that is at least 20-30 percent of the price of the home. In case you are unable to gather that much, try asking a family member for a short-term loan. If you are successful in putting together this amount lenders will develop a certain trust in you and will definitely consider your application seriously.
- Revise your credit report– Having a poor credit score plays a crucial negative and deciding role in your application’s approval process. Hence, going through your credit report is a much better option. Order your credit report copy and review it from A to Z. Notice any red flags and find every detail about them. Now prepare to explain it to the potential lenders with confidence.
- Make a list of lenders –You will definitely get a lot of suggestions when it comes to lenders from friends and family. You may even find plenty of them online. But apart from them, do your research and make a list of those mortgage lenders. They can help new home buyers with a bad credit score.
- Do not get excited –Do not rush to sign the first mortgage offer that you receive. No doubt it sounds tempting and exciting, but don’t get carried away. It’s just the beginning. Chances are that you will land yourself an offer at a much better interest rate if you apply to 4-5 more lenders.
Take these as some initial protocols that every first time home buyer should follow. If your credit score is poor, then you need to be extra cautious and alert in your every step. Try to understand, what lenders lookout for in people with a bad credit score. Work on those areas and help yourself and a great deal. We, at Canada MGC, provide mortgage for homes and businesses. In case you have a bad credit score, then take benefit of our specially designed plans and become a homeowner for real!