Mortgage Updates

If you have bad credit you might think that getting that perfect home you’ve always dreamed of will stay a dream, but that is not necessarily true.

A mortgage is a secured loan, meaning you put up your house as collateral. Therefore, if you fail to pay off your loan, the lender has the right to foreclose on your property. So as we said before, it may be more difficult but not impossible to get a mortgage if you have bad credit.

Statistically speaking, those with a lower credit score are more likely to default on their loans. To offset the risk, lenders usually charge you a higher interest rate and limit the amount of credit you can borrow (because the higher your interest rate, the higher your payments, which means you have less ability to pay back a higher loan amount). Lenders may also charge higher late payment fees.