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How to apply for a mortgage with a low credit score?
by Emily John Digital Marketing Service ProviderThe procedure for applying
for guaranteed car loans with bad credit is the same as the
procedure for applying for a mortgage with a high credit score. Choose a car
model, shop, compare lenders, and approach your favourite lender.
But the big difference is
that if you get a mortgage with a low credit score, you have to pay higher
interest. A typical loan costs more and needs to be paid off with a larger EMI
or in a longer period of time.
Tips for getting a proper
mortgage even with low credit
1. Work on improving your
credit score before you go buy a car
A credit score is a
three-digit numerical score that lenders use to evaluate your creditworthiness.
The higher the number, the more likely you are to get a loan on favourable
terms. Credit scores are calculated based on past loans, credit card invoice
repayments, and another credit history such as EMI.
2. Offer to pay a large
amount of down payment
The best way to ensure that
your mortgage is approved with a low credit score is to offer a large amount of
down payment. In general, most lenders do not approve a loan of 100% of the
vehicle's road price. The loan amount covers only 80% of the car price. The
borrower has to pay the rest out of his pocket. Centreline
Finance will help you in getting your car loan with bad credit.
3. Invite co-signers
Borrowers usually do not
need a guarantor / co-signer to apply for a mortgage. However, if your credit
score is low, consider including a co-signer in your loan application.
A co-signer is someone who
takes out a loan with you. If the primary borrower defaults, he/she is
responsible for paying the loan. Ideally, the co-signer should be someone with
a good credit score.
4. Choose a cheap car and
skip the extras
A low credit score means
that you can't get a big loan. This means that you will not be able to buy the
latest sports cars / SUVs. Instead, choose an economy car and compromise on
additional features such as premium leather seats and sunroofs to reduce your
total mortgage.
5. Final resource: Find out
about dealer financing
Most car dealerships are
linked to major lenders (banks and NBFCs), making it easy for clients to get a
mortgage. However, the biggest drawback of this method is that the loan you get
directly from the dealer is expensive. Interest rates are high. On the positive
side, the qualification criteria are not strict, so you can get a loan
quickly.
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About Emily John 
Digital Marketing Service Provider
167 connections, 5 recommendations, 745 honor points.Joined APSense since, December 29th, 2018, From New York, United States.
Created on Nov 26th 2020 10:47. Viewed 275 times.
