Unfortunately, the mindset of most borrowers is that it is not possible to get a fair mortgage with bad credit. To some extent, getting a mortgage with bad credit is not easy. However, it is possible to get a mortgage with bad credit.
Nevertheless, the requirements to get a mortgage with a bad credit score may differ from regular loans. Most lenders regard people with a bad credit score as high risk. Hence, the requirements for bad credit mortgages are stiffer.
Basic requirements lenders will request from a borrower with a bad credit
As stated above, the requirements for borrowers with bad credit scores differ from those who have better scores. The chances of getting a mortgage from a lender are slimmer, hence they may request the following:
- Guarantor: Most mortgagors will request a guarantor who has a means in the like sum of the mortgage. In other words, the guarantor must have a value of the property that is commensurate with the mortgage.
- Payment of utility bills: The lender would request receipts of your utility bills. More so, if the payment of your utility is not up to date, you may not get the mortgage.
- Deposit: To assure the lender that you are not a high-risk borrower, you may be asked to deposit 20 to 30 percent of the value of the property. Some lenders may even request 50 percent depending on how bad your credit score is.
Conclusion
Always ensure you repay your monthly payments to avoid a bad credit score. To get a bad credit mortgage, reach out to MortgageKey.