So, you’ve made a few mistakes and now you have bad credit but you want to buy a house. A bad credit rating might mean a “No” from the bank, but with a mortgage broker in Kelowna or Vernon, it means, ‘Let’s talk.”
Buying a house with bad credit is possible. With some expert advice from your Okanagan mortgage broker, a bit of tinkering on our end and some savings on your end, you can become a homeowner.
Save for a big down payment
Lenders are more likely to consider and approve you for a mortgage if you can put down at least 20% of a home’s purchase price. That means on a house listed at $350,000, you’d need to come up with $70,000. If you can put down more, all the better. It means you won’t need to borrow as much from your lender, and that’s less risky for them.
See our post on tips for saving for a down payment.
Talk to a Vernon mortgage broker
While banks are pretty limited when it comes to offering mortgages to people with bad credit, Kamloops mortgage brokers have a lot more options. With access to dozens of lenders and hundreds of mortgage products across Canada, a mortgage broker can hunt down a lender who is willing to give you mortgage.
Of course, depending on your credit rating, you might have to pay higher interest rates. But if you’re keen to buy and you’ve found the home of your dreams, that money might be a small sacrifice in the long run.
Consider a private mortgage
At Kal-Mor Mortgages in Vernon, we can match home-buyers who can’t qualify for conventional mortgages with individuals and groups who can finance your mortgage. They act as the lender, loaning you the money to buy the house and earning interest; you make the monthly mortgage payments. If you have bad credit and can’t get a big down payment together, a private mortgage might be the answer.
Do you have bad credit but you want to buy a house in Kelowna? Talk to the Okanagan mortgage brokers at Kal-Mor Mortgages and Investments to see how you can qualify today. Now helping people get approved for mortgages in Salmon Arm, Kelowna, Kamloops and Vernon. (250) 549 – 3250