Below we collected four first steps that you need to take in order to get a bad credit mortgage.
1) Get your credit files
This is a number one step. First of all you need to acknowledge your current situation with all the accounts and credit history and only after that try to apply for a bad credit mortgage. You should be ready to the fact that different credit firms and banks in a weird way report their information to different reference agencies, and some of the latter may get not the full picture of your history. So, in order to make sure that you do everything to get your bad credit mortgage in Toronto make sure that you know and have collected all the information about your credit history and that you take it with you for an appointment in order to avoid any misunderstandings with a lender. Do not also forget to make the copies of all files just in case they will be needed.
2) Do not make multiple searches
This is a very important piece of information to remember. Do not try to play too safe at this point by applying to a band and to several places online. All that appears in your story immediately and a lot of “real” banking lenders will turn you down if see that you have already also applied for a bad mortgage online. Make one step at a time. Moreover, by applying to several places where you are not sure in the happy ending also only worsens your situation, because every such failure will be mentioned in your credit history.
So do not make a fuss of it and think very carefully before applying to some company for a bad credit mortgage.
3) Get a reasonably priced broker
If you are not easy with finances and application process for any loans and especially second mortgages then it is highly advise to hire or at least get a consultation from a professional broker. But do not pay the earth at this point either remember that you will need money to repay the mortgage you are applying for. According to professionals in this field maximum fees should be not more than 2% of the loan amount you are applying for. In general, everything of course depends on the complexity of the situation you have and on the amount of money you want to apply for. Also do not forget that you hire an adviser who should help you, so make sure that you understand every work a person says to you before hiring.
4) Find additional ways to restore the history
Bad credit mortgages also include home loans so popular lately in Toronto. In both cases you apply for some amount of money in exchange for some guarantee, but you can increase the possibility of getting the money by improving the existing credit history. The easiest ways to do so if first of all check it at least twice a year to make sure that everything is fine and secondly to repay credit card bills and general home bills. This usually increases the “value” of the client in the eyes of lenders.