Secure Your Mortgage Faster.
For many families, there is one thing that stands in the way of getting a mortgage on a beautiful new home: a low credit score. However, all is not lost. Though there may be a few twists and turns, it is possible to get on the road to home ownership even if you do not qualify for a mortgage loan. First, figure out where your areas of weakness lie. A low credit score is not the only obstacle to obtaining a mortgage. If you have a low income and an unsteady employment situation, it will be more difficult to get a loan.
Options to Help You Work Toward Owning Your Own Home
Meet with a Financial Counsellor
These experienced professionals can help you with debt consolidation and making a real, actionable plan for turning you into an attractive mortgage candidate. Financial counsellors know when it is smart to accumulate more debt for a worthy cause and when it is best to bide your time. Their intimate understanding of banks and loans will be invaluable.
Consider a Co-Signer
It might be easier to prove to a trusted family member that you are ready to handle a mortgage than it is to prove the same thing to a bank. With a co-signed loan, you will be responsible for the payments, and you can start building up your credit at the same time. However, if you fail to pay the loan, the co-signer will be required to make the payments. Do not enter into such an agreement unless you are sure you can handle the responsibility.
Make a Plan for the Future
Within two years, you could build your financial reputation to the point where you would be in the running for a mortgage. Holding a job for at least two years shows a level of dependability. Save up for a down payment and minimize your current debts. This will involve a little scrimping and sacrifice, but if you are serious about owning a home, this will be necessary.
Rent-to-Own from a Family Member
If you have a family member who is willing to buy a house and let you pay the mortgage payments, taxes, insurance, etc. as if you were renting, you can set the arrangement up as a rent-to-own situation. This way, the family member owns the house, and they will not be taking as big of a risk as a co-signed loan.