Inglewood Business Magazine May 2019

Bad Credit, continued...
Higher Interest Rate and
Larger Down Payment
Even though you have a lower credit
score with less-than-perfect credit, it’s
still possible to secure a mortgage loan,
but you should expect to pay higher
interest rates.
A borrower with subprime credit may
also have to pay a much higher down
payment than someone with a better
credit rating. By putting down a larger
down payment, you show the lender
that you’re willing and able to pay the
monthly payment. When you invest
more of your money, the lender sees
that you’re serious about purchasing the
home and keeping the home.
Rebuild Your Credit
Real Estate | Inglewood business magazine
If you want to avoid the larger down
payment and higher interest rates,
it’s best to begin the credit rebuilding
process before you apply for a mortgage
loan. Paying all your bills on time
can improve your credit and begin to
build a more positive credit history
for you. Paying down debt to secure
a better credit utilization ratio is also
recommended to boost your credit
score. The lower the total amount of
debt you owe, the better and higher your
credit score is.
Buying a home with bad credit isn’t
impossible. If you take advantage of the
home loans that are available to you
and do enough research to know you’re
getting the best interest rates, you’ll be
able to buy a house and possibly build
your credit while paying your mortgage.
IBM
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Inglewood Business Magazine May - June 2019
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