When looking for mortgage programs that consider bad or poor credit, the first thing to focus on is what currently shows on your actual credit score and credit profile. There are varying degrees of weak credit, and understanding your own credit profile in more detail can help locate suitable lenders.
For instance, a credit score that is below 650 may be considered to be bad credit by many lenders, but there are still institutionally based mortgage providers that will consider credit scores between zero and 650. The key is to focus on the lenders that are the most relevant to your credit profile and ignore the ones that will not be able to supply any bad credit mortgage options.
There are basically two ways for you to better understand your credit. First, you can contact either of the two credit bureaus that provide Canadian credit reports (Equifax and Trans Union) and get them to send you a copy of your credit report. You have the right to receive a copy of your credit report for free from these agencies. However, the free report does not include your score, which is typically an essential credit scoring element of most mortgage lenders.
To get a copy of your credit score, you need to go to either Equifax or Trans Unions website and purchase a credit report package that includes your credit score. At the time of writing, the approximate cost was $24.00. Not only does this allow you to see basically what a lender will see when you make an application, but because you made the request, the credit inquiry does not have any negative impact on your credit score (excessive credit inquiries requested by lending institutions on your behalf are considered by the credit reporting agencies to be negatives against your credit profile and can actually reduce your credit score).
The second method to better understanding your credit is to apply for financing through an experienced mortgage broker. Once you provide written permission, the mortgage broker can access your credit report and provide you with the most relevant options that relate to your credit profile. At this point, any application you may make will only be to a relevant lender who’s criteria match up with your credit history and score.
For the average person with bad credit, the process of finding relevant lenders can be daunting. This is where a mortgage broker can provide excellent value to your search process.
If you’re trying to figure out your bad credit mortgage loan options, then I recommend that you give me a call and we can go through your situation together can see what options are available to you.
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel