Can you get a mortgage with bad credit and as a first time buyer?

Mortgage Broker

Many first-time buyers assume they will not qualify for a mortgage because of their adverse credit rating but this is not the case. In reality, many mortgage lenders are willing to work with buyers who have bad credit. Find out more about the mortgage process and credit score options below.

Mortgage Credit

Credit issues are very common, especially with the younger generations that are fresh from their studies and struggle with savings. That is why many young people assume they are not eligible for a mortgage as they do not have excellent credit, but it is still possible to secure a mortgage. 

If your credit rating is lower than average, you can still secure a mortgage for your first home. Contact Airborne Mortgage Solutions to discuss your options. 

Credit Issues 

Most people assume that a credit rating is not flexible and determines the outcome of every financial decision but that’s not the case, especially when it comes to mortgages.  

It is true that a conventional credit score is a factor when determining mortgage viability, but other factors can also be considered. Some lenders take a view on the applicant’s credit score and try to understand why it is low. It could be because of a life event like going through a divorce or temporarily out of work, these events can skew the otherwise perfect credit file. As long as lenders understand the rationale behind the low score, they would be willing to lend.

Partner’s Credit 

Some people might be reluctant to buy a home with a partner who has bad credit, however there is something called financial association that means someone’s credit is affected by joint accounts and joint applications. The good news is there are mortgage lenders that deal with these issues and some could ignore the partner.

If you want to buy a house with bad credit and protect a partner in a better situation, you can find mortgage lenders that will look at your application separately and work out a suitable financial arrangement. Again, it is possible to buy a house with bad credit using the right lender. 

Application Approval 

If you are serious about getting a first-time mortgage, you may be able to get some help with bad credit. The application process can be very long and complex, so you need to get the right advisors and apply for credit carefully. Lenders look at how often you apply for credit at once so to avoid many rejections on your journey toward owning a property, you need to apply to the right lenders at the right times. Working with a mortgage advisor means they can find lenders willing to agree to a mortgage “in principle” which increases your chances of success.  

Final Thoughts 

If you are a first-time buyer with adverse credit, you can still acquire a mortgage by speaking with a mortgage advisor and keeping your options open. Contact Airborne Mortgage Solutions to speak to an expert about your situation and look at some of the realistic options available.