Bad Credit Home Loans: How We Help Where Banks Fail
When you begin searching for a home, you can count on many opinions and advice you do not need. Among these are usually a few half-truths and false assumptions about the industry. One such topic is getting a home loan with bad credit. People often believe that their journey to homeownership is over if they have a poor credit history. However, where conventional banks fail, we might be able to find a solution for you.
Can You Get a Home Loan with Bad Credit?
The belief that you cannot get a home loan if you have bad credit is slightly true. If you have bad credit and if you are trying to get a loan from a conventional source, like a bank or other large lender, you will struggle to get a loan.
However, there are many unconventional and specialist loans available for those with poor credit. Our experts know how to find you the right loan to meet your needs with fair repayment terms. We do not back away from loans that are a bit out of the box, and we will work tirelessly to get you the right loan.
What is a Bad Credit Home Loan?
A bad credit home loan is a loan funded by non-conforming or specialist lenders. Lenders that offer this type of loan may have different terms than large lenders and big banks. Interest rates for bad credit home loans tend to be higher because the lender is taking more of a risk lending money to those with a history of bad credit.
Often, borrowers will get a shorter-term bad credit home loan and refinance when the reasons for bad credit are off their credit history. This gets them in the door but helps to save money later.
Reasons You May Want to Consider Home Loans for Bad Credit Borrowers
Some potential borrowers avoid bad credit loans because of the higher interest rates. This might make sense to you, but there are several excellent reasons why getting a bad credit home loan is your best option.
- You will be out of the rental market, and your home will be yours as long as you make the payments.
- As time passes and you make on-time payments, you are building your credit. Eventually, you will see the change in your credit and can refinance to another, lower interest rate.
- Owning your home is a great way to achieve financial stability as well as a solid history of residence and employment.
- A bad credit home loan is put together with what you need to help you make the payment and build your wealth.
Why Your Credit Might be Poor
If you struggle with understanding why your credit is poor, it is worth the time to examine your credit report and seek out patterns and reasons your credit is poor. There are several points to consider including:
- Errors made by credit providers do happen, and they can cause havoc with your credit.
- Credit agency reporting errors also happen. This is why you need to be proactive when it comes to your credit score. Periodically search for any mistakes and request that errors are repaired.
- Poor Management of finances: There are several ways your best-intentioned management can go awry.
- Any court judgment on financial payments
- Defaulting a loan
- Failure to update your contact details
- Having your home foreclosed
- Making too many applications for credit
- Missing on loan repayments
- Not paying bills on time or not paying at all
How to Qualify for Bad Credit Home Loans
You must remember the fact that while you cannot change your past mistakes, you can control what you do as you move forward.
- Begin by speaking with a specialist mortgage broker. Be upfront about your past debt problems. You want to demonstrate that you understand your past mistakes as well as how to prevent future problems.
- Do everything in your power to avoid any new credit problems. This includes:
- Paying all of your repayments on time (this can be easier if you schedule the payments ahead of time or opt for automatic payments)
- Keeping in contact with lenders to avoid a “clearout” being listed
- Paying something, not nothing, on your debts because this demonstrates an effort on your part
- Pay off your existing defaults. Just as paying something on your current debt shows effort, working to pay off the loans you defaulted on shows that you are taking responsibility for your mistakes and doing what you can to improve the situation and repay the debt.
Why Should I Work with Quantum Capital?
We have over a decade of experience helping hundreds of clients get the loans they need at a reasonable rate. Our experienced team listens to what you are saying and never tries to push you into any loan if you are not comfortable. Additionally, we offer:
- Fast approval: Because we have a great many sources for financing, we can find your funding quickly. Additionally, once your loan is approved, we will get your money to you promptly.
- More loan flexibility: When you apply for a loan with a big lending company or bank, your funding sources are limited by their search for options. This is especially true for those searching for home loans with bad credit. At Quantum Capital, we find the options that conventional lenders cannot. Our network of lenders will help make your loan a reality.
- Greater accessibility: Because you are more than another number to us, we make it easy for you to get in touch with us.
Do not give up on your dreams of a loan for a home. We have experience working with bad credit home loans and can help you. To learn more, contact us today.