Bad credit is something that happens to many of us. Tumultuous job markets can make life difficult for anyone. But as a home buyer, you needn’t be resigned to the fact that buying a home is merely a distant dream. In Canada, especially areas like Surrey, it is no longer an impossibility for a person with poor credit scores to be able to buy Surrey homes.
Today, there are homes for sale in Surrey BC and other towns and cities that are well within your reach, despite having suboptimal levels of credit to support your purchase. There are several things you can do to overcome this problem and move in to your dream home sooner rather than later. In fact, the scenario is vastly different than it was even in the recent past – as recent as 5 or 10 years ago. During pre-recession times, bad credit was usually a guaranteed way to get your mortgage application rejected but today, there are several options for the potential home buyer, such as applying for a bad credit mortgage.
Why a Bad Credit Mortgage?
Many people with homes for sale in Surrey are finding out that customers with bad credit are actually more motivated to pay off their mortgages than the average customer. Why is this? The primary reason is that a bad credit mortgages usually come with higher monthly payments and even larger down payment requirements. Despite this, people still apply and are approved for these loans because it helps them in many ways: it gets them their home, but in addition it can also help them pay off other high-interest loans that may be hanging over their heads. It is also a great way to repair credit ratings and get back into the black as far as personal finances go.
So applying for a bad credit mortgage in Surrey, despite its higher price, is actually worth the effort to most people. Those with real estate careers in Surrey who either work as independent agents or part of an agency are quite familiar with the process and can help speed up the process. Though approval typically takes much longer for poor credit applications, your advisor will be able to guide you to the right mortgage lender dealing in such applications.
The key factor here is your ability to pay back your loan in the stipulated amount of time. If your credit situation has come about because of a previous job loss that led to bills mounting up but you currently have a steady income, then your case will be looked upon favorably. Any proof that you have to show that you can pay back the loan should be sufficient to get approval, although the final decision is completely at their discretion. In any case, you at least have an option open as far as buying your home is concerned.