How to buy a house with a mortgage if your credit report is not very good, clarify these four points, don’t worry

Buying a house with a down payment and mortgage is believed to be the first choice for most people. It can not only own a new house earlier but also make reasonable use of the funds at hand.

However, it does not mean that everyone can successfully apply for a mortgage to purchase a house.

Because of the principle of mortgage, you essentially mortgage your house to the bank,ofw loan without ccsl and the bank helps you pay the remaining balance to the developer in one lump sum, and then you pay the bank back in monthly installments.

During the mortgage process, the bank will definitely evaluate your repayment ability for risk control,personal loan calculator and the most important report is the credit report.

Many people fail to get a down payment for a mortgage because their credit score is unqualified and the bank refuses to approve the loan.

So how do you make a down payment to buy a house when your credit score is not good?

You should choose different solutions in different situations to see which one you belong to.

1. The credit report is black

"Black" here mainly refers to serious overdue loans within 5 years, whether the debt has been paid off or is overdue. In short,student loan it is unlikely that a basic mortgage will be passed if it is seriously overdue, even if the amount is one penny overdue.

In this case, don’t imagine applying for a mortgage in your own name. You can apply in the name of your lover or family member.

2. Credit investigation costs

Whether you have been slightly overdue but have paid it back, or you have recently applied for various loans frequently, or you have printed and checked your credit report frequently, resulting in a bad credit report, you can wait three months or half a year before considering applying for a mortgage.

Of course, you must hold back during these six months and do not apply for a credit card or click on any loan advertisements.

If you are particularly anxious to buy a house, without considering applying for a mortgage in the name of your lover or family member, you can also communicate with a real estate agent and match a bank with slightly more relaxed conditions to apply for a mortgage.

However, the interest rate will generally be higher than that of a normal mortgage. If you can accept the interest rate, you may consider not raising a credit score.

3. High debt

If you have taken out a loan under your name before and the amount of debt owed is relatively large and is still being repaid, the bank will calculate your repayment ability based on your income, so the mortgage will fail if the debt is high.

In this case, you only need to prove that you have sufficient repayment ability. For example, if a couple takes a joint mortgage, the combined income of the two people can improve the repayment ability, and the mortgage approval rate will naturally increase.

4. Large number of loans

Many people like to borrow small amounts, borrowing a little at a time, and before they know it, they have more than a dozen small loans, or even more.

Although the loans range from several thousand to tens of thousands, and the total adds up to only a few hundred thousand, in the eyes of the bank, having more than ten loans under one person's name will undoubtedly lower his credit qualifications.

Therefore, in this situation, before applying for a mortgage, you can pay off all small loans in your name at once, and then wait a few months before considering applying for a mortgage.