We all have heard of the American Dream. For most of us, a big part of the American Dream is owning your own home.
While there are several options for getting a mortgage with bad credit, there are compromises you’ll likely have to make. In short, the consequences of buying a new house on bad credit is paying more for your Dream.
Your credit is one of the most important factors that lenders consider during the mortgage application process. Your credit is a decision-making tool for lenders. So, while you can possibly get a home loan with a low credit score you will be looking at paying a high down payment and higher interest rates costing you thousands of dollars more in the long run.
The average mortgage term is 30-years. Lets look at the following example;
A mortgage on a $150,000 home for 30-years.
Interest Rate: 4%
Monthly payment: $716
Total amount paid after 30 year: $257,760
Interest Rate: 10%
Monthly payment: $1,316
Total amount paid after 30 year: $473,760
Difference of Good Credit -VS- Bad Credit: $216,000.
The Cost of purchasing this home with bad credit is $216,000 EXTRA!!!
Remember to keep in mind that your credit score is not the only factor for a mortgage lender consider. Income, down payment, employment history savings, and the amount of debt are also important and very crucial factors to consider .
By far the best advised we can offer? Seek professional help!! Before you apply for a mortgage, avoid any surprises and ask our pros for help!
Here at Credit Services of America, we are the only place in the region that is licensed and bonded to help with credit repair, debt settlement, student loan consolidation and credit trade lines all under one roof. We begin with one of our FREE Credit Consultation with one of our experienced Credit Consultants, where we learn about you and your goals. We then set up a plan on how together we can help you achieve your dreams!
A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!
*Individual results may vary. Please call for more details and to discuss your own individual situation