Tag Archives: how to get a mortgage with bad credit

Mortgage Brokers vs. Bankers

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It is a mortgage tale as old as time… and one of the biggest choices that mortgage shoppers face when getting into the market is where to go….. broker or bank?

It can be a tough choice, many of us have been with our banks for years and it just seems easier to meet with the specialist there. Our parents went to the banks, your friend got a “great rate” at the bank and well, it just seems like the traditional thing to do.

Word is on the street that our society is taking a turn back towards “traditional” ways but before you make an appointment at your nearest financial institution, here are the top 5 reasons why mortgage brokers are just plain GREAT!

We offer mortgage plans that a banker does not have access to: Part of being an independent mortgage broker is that I am able to “shop around”! Banks only have typically about 3 products to offer, I can take your application to over 50 lenders and without a doubt find you the best rate and plan to suit YOUR needs.

We don’t turn our noses up at those with bad credit:  Mortgage brokers have flexibility and can often find a lender who will work with you.  Unfortunately, bankers have to adhere to their bank policies often placing restrictions on available options.

Flexible hours: Not a 8-5 person? No worries, I’m not either!! Now granted, if you call at 3 am you might have to give me a minute to fire up the Keurig but other than that, meeting outside regular business hours or at a location of your choice is not a problem!

Worried that you’re self employed? Don’t worry so am I: Banks can often times remind me of the government, there is not a lot of room for “grey area” black and white or nothing… If you are receiving your income from a non-conventional source ex: self employment, long term disability, alimony etc.  than have no fear. Brokers love the “grey area” in fact, we thrive in it. We keep ourselves up to date on the rules and the trends of the lending industry, knowledge is power and we will deliver your application to a lender who will happy to work with you!

We work for YOU: We offer a unbiased, free service to clients that helps them properly asses and understand the mortgage process. We love what we do and we like saving you money. We get down in the trenches, negotiate, shop around and provide options!

If I haven’t convinced you, feel free to give me call and get ready to be surprised.

Kelowna MortgageDave ~ Kelowna mortgage broker 🙂

They haven’t been built yet but Kelowna homes are being snapped up

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The current housing market in the country is a hot topic, and nowhere is it hotter than in British Columbia, so it might be surprising to hear that real estate is being snapped up and sold out within a matter of hours after hitting the market.

There is more than enough data to show that the real estate market in the Okanagan is unaffordable for most, prompting developers to come up with unique ideas. Micro suites, eco-friendly buildings, and ranchers are just some of the new developments popping up in places such Kelowna and Penticton and they are selling out faster than anyone expected.

Continue reading here…… story via Kelowna Now

5 Ways To Boost Your Credit Score

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I have spoken about credit a lot. It is one (but not the only) important piece of your mortgage puzzle. What can hurt you score, cant often times be more obvious than what can be done to help. Today I’m talking about the five things that you can do to improve your score, because the little number follows you whether you like it or not!

  1. Bring, and keep, your open accounts current. The most important part of your FICO score is a history of on-time payments. If an account becomes 30 days past due, you can lose a lot of points. It is much more important to bring and keep open accounts current than to handle old collection items of closed accounts.
  2. Reduce your credit card utilization. Utilization is defined as the percentage of your available credit that you are using. To calculate your utilization, divide your statement balances by your credit limits. If you have $10,000 of available credit and have a $1,000 balance, your utilization rate is 10%. According to data from Experian Decision Analytics, people with the best credit scores (above 780) have a utilization rate of 5.6%.

Continue reading…..

Story via Forbes

How a simple credit error can ruin your home-owning dream

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Imagine the anxiety of watching your credit score unexpectedly plummet after spending your entire adult life maintaining good credit.

Now suppose this credit decline blocks you from getting a mortgage on the house you planned to buy.

That’s precisely what happened in this story, and it happens to mortgage applicants all across the country with surprisingly frequency.

All too often the culprit is unpaid phone bills. In this case, his cellphone provider sent the account to a collection agency after being just more than a month late on its cancellation fee. That caused his credit score to drop like a lead pickle, approximately 80 points (out of a theoretical 900) virtually overnight.

It never should have happened that way. Collections are meant for people who can’t or don’t want to pay their debts. But sometimes, for one reason or another, people honestly don’t know they’ve missed a payment. Reputable creditors make bona fide efforts to contact debtors for payment before taking this extreme measure. That didn’t happen here.

As a mortgage broker, I see this time and again. For most borrowers, it’s just a simple oversight. But as this case shows, an unnoticed cellphone charge can spell credit-score disaster. By the way, I learned the hard way that when you cancel your account, some phone providers stop automatically billing your credit card and e-mailing you outstanding charges. How thoughtful of them……

To continue reading & find out how to avoid credit drama just like this, click here (story via Globe & Mail)

How to get a mortgage (when your not the ideal borrower)

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If you’re a credit-worthy employee at a Fortune 500 company and don’t have much debt, the mortgage world is your oyster. Banks knock on your door looking to give you the best rates, most advantageous terms and any other perks they can use to get your business. You’re an A-lister. A borrower with impeccable credentials.

But what if you don’t quite fit that pic? It doesn’t mean you’re out of luck, it just means you have to learn how to work the system in your favour.

Truth: You can get a mortgage if you’re self-employed, got a poor credit history, or if you own more than three rental properties……

To help you, here is a list of some of the most common B-class borrower hurdles and the best ways to minimize the risks and get better mortgage rates and terms.

Have a read & as always, if you have ANY questions, never hesitate to get in touch.

How to get a mortgage with bad credit

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Truth: Your credit rating is not the only piece of the mortgage puzzle but you need to know where you stand.

I have been in the mortgage business for a long time and still, the most common question that I get asked is plain and simple……

“How do I actually get a mortgage with bad credit?”

I get asked this a lot and my very BEST ADVICE is NOT TO MAKE ASSUMPTIONS.  Many people think they have poor credit from something that happened years ago and are pleasantly surprised to find out the item in question is no longer pulling their credit down.  Conversely, many people think they have good credit only to find out that parking ticket or phone bill they didn’t agree with nor pay, is costing them dearly on their credit report!

Here’s what to do:

  •  let me check your report out so you know exactly where you stand. (Free)
  •  If you do have some serious problems, let me give you some tips on how to improve your situation, if not for now, for a future application (Still free)
  • You would be surprised how many mistakes I find on credit reports; things that have been paid off long ago but aren’t logged on the credit report – Again never make assumptions….

If your curious to know your score, give me a shout if there are improvements to be made, you would much rather tackle those now than have a nasty surprise later 🙂

What happens to your credit rating when you miss a mortgage payment?

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I would just like to lead by saying, your mortgage payment doesn’t always show up on your credit report, but where it is going to bite you (if you are late on multiple payments), is at renewal time & it will hit you right in the pocket……

If you miss three consecutive payments or more in a row, it will lead to foreclosure proceedings (yuck), which is when the bank or lender starts the process of legally taking ownership of your property due to the lack of payments. Believe it or not, banks or lenders don’t want to own your home, but if the lender isn’t getting paid, it will try and sell the property in order to reduce its losses. Foreclosure shows up under the public record portion of your credit report……

You may assume that bankruptcy is the worst thing you can do for your credit; however, if you are applying for mortgage financing, going through a foreclosure is the absolute worst thing you can do for your credit. Bad consumer credit can be rebuilt fairly quickly, but very few lenders will look at providing financing for you if you have a previous foreclosure showing up on your credit report, regardless how strong your current credit is.

If you find yourself in a situation where you may not be able to make your mortgage payments, contact your mortgage lender or mortgage broker to find out what can be done. In all my years in the mortgage biz, I’ve never seen the attitude of pretending it will all go away actually work for anyone.

As always, if you have any questions about the mortgage industry, never hesitate to get in touch 🙂