Busted! Don’t Believe These Mortgage Myths!
While a bad credit score or bankruptcy shouldn’t stop you from obtaining a mortgage, many people perceive it as a roadblock to their dreams of homeownership. In reality, there are several opportunities available to obtain a mortgage immediately, provided you work towards reinstating your financial status and building your credit score.
Unfortunately, with the widespread of several misconceptions about mortgage eligibility, many people believe that they have to forfeit their homeownership dreams. To help you distinguish between facts and fiction and make you aware of the advantages you could gain to rebuild your financial status, Preeti Rao Real Estate & Mortgage Broker has debunked three of the most widely believed myths about mortgages.
Myth 1: You cannot apply for a mortgage if you’ve been bankrupt.
It’s an unfortunate situation if you went through a bankruptcy, but it doesn’t mean it’s the end of the road for you in terms of homeownership. To obtain a mortgage after bankruptcy, you need to get a credit card that starts reporting and rebuilding your credit. You can build up your credit score and potentially be approved by a ‘Class A’ lender as soon as two years within being discharged.
Myth 2: You will never qualify for a mortgage with a poor credit history.
This is one of the most widely believed myths among borrowers! ‘Class B’ and ‘Class C’ lenders specialize in dealing with clients who have a “less than perfect” credit score. With these lenders, you will likely have to put in a higher down payment and possibly pay higher interest rates due to the risk brought to the table, but once you fix your credit score, you can shift to a ‘Class A’ lender. To find the best lender for your needs, you need to enlist a mortgage broker experienced in dealing with clients that have bad credit and are capable of getting you in touch with potential lenders. With their experience and knowledge, they will be able to help you qualify and find a mortgage product despite the challenges of your credit history.
Myth 3: Banks offer the best interest rate and mortgage product.
This is not true, as banks are limited to their guidelines and do not think outside the box. Banks may offer discounts for their existing customers who are loyal to the bank, but they are not as versatile as mortgage brokers. With the services of a mortgage agent, you will receive several options not only from banks but also from other lending institutions. Moreover, mortgage brokers will help you find a mortgage that fits your financial needs and lifestyle by negotiating the mortgage terms on your behalf.
If you’re looking to steer clear of more myths like these and gain expert advice on mortgages, reach out to Preeti Rao Real Estate & Mortgage Broker. As one of the leading real estate agents and mortgage brokers in Mississauga, ON, I am committed to your needs and will help you find the best mortgage to suit your requirements. With over fourteen years of experience in helping my clients secure their dream homes, I will go above and beyond to meet your expectations and bridge your mortgage and real estate needs.