Good people can have bad credit! We all face bumps in the road…. there can be many reasons why we have damaged our credit and find out at our local BC bank that we can’t get us the mortgage we had hoped for. Late payments, collection items and disputed accounts are all examples that can lead to the arranging of a mortgage for people with poor credit.
The good news is that even people with bad credit can get a mortgage! The not so good news is that people in this situation will pay a higher interest rate and possibly even a lender fee. So, a poor credit mortgage should not be viewed as a long term strategy. They are a short term strategy. It is just a step in the rebuilding process, and a good mortgage broker that specializes in poor credit will help you come up with a good plan.
A bad credit mortgage is a means to an end, it is not the end itself. Everyone needs an exit strategy. Working with a BC mortgage broker that specializes in poor credit mortgages can help you get back on track, and find out what steps are necessary to repair the credit and come up with a plan to return you to a conventional mortgage with an A lender. A mortgage for people with damaged credit is best optimized over one, two or three years. If you keep your credit neat and clean over the period of time recommended, you should be able to transition to a mortgage with best market rates.
Often, consumers will hear catchy little songs and jingles on the radio or television from lenders that offer private financing. It can be tempting to contact them yourself and put a bad credit mortgage in place. This is not a good idea. Those same lenders often have better rates and terms available for brokers that call with the exact same client!! That’s because they know that brokers are contacting MANY alternate lenders, and that they must offer their best rate right away or they will lose out to another lender.
Someone with great credit will often receive a similar good rate no matter what bank they go to. It is very, very different for bad credit mortgages. A mortgage broker skilled in placement of mortgages for people with damaged credit makes a big different on the rate, fees and terms that are presented to you. If you’ve already approached a private equity lender yourself, be sure to get a second opinion from your broker. It can save you a lot of money, and working with a professional ensures you come up with a solid plan.
Rebecca is licensed to place mortgages anywhere in British Columbia. Her office is in Vancouver BC and she lives in Maple Ridge, so most areas of the lower mainland are convenient for her to come meet you and discuss your options, privately and confidentially.