
SHOULD I APPLY FOR A MORTGAGE WITH BAD CREDIT?
It’s not uncommon for someone to have bad credit. Unfortunate things happen to very good people and as such they can fall into some uncomfortable economic situations. When lenders first extend credit they look at the ability of that person to repay the debt along with looking at previous payment patterns with past credit accounts. If the lender doesn’t think the person will pay back a loan based upon the lender’s terms the loan won’t be made. Lenders don’t enter into loan agreements with the understanding they won’t be paid back. Nor do borrowers enter into a loan agreement with the intention of not paying back the loan. Yet bad things do happen sometimes and good credit can turn into bad credit. A divorce. An extended illness or even death of a family member. A loss of a job or income. These are all the most common reasons bad credit is formed.
Okay, so if you do have bad credit, should you apply for a mortgage? Before that question is …
It’s not uncommon for someone to have bad credit. Unfortunate things happen to very good people and as such they can fall into some uncomfortable economic situations. When lenders first extend credit they look at the ability of that person to repay the debt along with looking at previous payment patterns with past credit accounts. If the lender doesn’t think the person will pay back a loan based upon the lender’s terms the loan won’t be made. Lenders don’t enter into loan agreements with the understanding they won’t be paid back. Nor do borrowers enter into a loan agreement with the intention of not paying back the loan. Yet bad things do happen sometimes and good credit can turn into bad credit. A divorce. An extended illness or even death of a family member. A loss of a job or income. These are all the most common reasons bad credit is formed.
Okay, so if you do have bad credit, should you apply for a mortgage? Before that question is …