I get inquiries every day, and not all of them will result in bank mortgages – at least yet.
Like today’s from Deanna; “I am 22 years old and I do not have a good credit history …”
This is not an uncommon situation.
You Do Not Have A Good Credit History
Just because you do not have a good credit history should not stop you getting a home loan.
It can make things a lot harder than those with good clean credit, but it doesn’t automatically mean that you cannot get a home loan.
The first question I ask is what happened?
Understanding what caused the bad credit is the first thing I do, and after I understand the cause I can establish how a bank or non-bank lender will look at the application, and therefore
Credit history is one part of the equation – good credit or bad credit.
How Much Are You Putting On The Line?
Lenders are concerned about the risk to them – not you.
In this case Deanna has admitted her previous issues that led to her credit history being impaired, but she has also explained what happened to cause the issues and it seemed like a fair enough reason. She had a situation in her past that would have caused a similar problem for most of us … it was not something that should reflect badly on her.
Lenders will typically look at other strengths of an application too.
- Income – a lender needs comfort that the repayments are going to be able to be met.
- Deposit or Equity – a lender needs to know how much you have on the line and therefore are prepared to lose.
As a non bank broker I have the experience to put together mortgage applications that are at times too complex for other mortgage brokers. People sometimes need a broker that can look at the positives of an application and balance those with the negatives, which should result in a situation that makes sense to a lender.
Getting Hard Loans Approved
I often say that the people with the money can make the rules.
Given this, we need to look at an application and find a way to show the lender (the one with the money) that they should back the deal.
That is what I do – we get those hard loans approved even when you do not have a good credit history.