Mortgages – Once Burnt, Twice Rejected, Three Times Shy
There are a lot of people around at present who have not escaped the latest economic downturn completely unscathed. For those who have experienced problems starting again can be difficult, especially if lenders are not looking at your situation favorably. The danger in being in this situation is that you give up that home ownership is now beyond you.
Of course, much will depend on your actual credit history and whether or not lenders were forced to foreclose on a previous property. If you also took the step of filing for bankruptcy, the situation is even harder still. If you are in this situation the only way forward is by rebuilding your credit record.
There are a lot of people that really got in first. They sold up everything, paid out the mortgage and left themselves with very little in the way of assets. Many lost jobs and have not been back in the workplace for long. Their credit history, while not poor, may still cause problems with some traditional lenders – particularly since they too are now wary of taking on loans that could be doubtful.
Having a decent size deposit is a good start, however, the best start is by doing your homework. Being rejected for a mortgage is demoralizing at the best of times – when trying to rebuild it can feel like a kick in the stomach. Look at your situation closely and be realistic with what repayments you can afford.
Visit a site like The Best Home Search Ever. In the “search by” drop down window, select Monthly Mortgage. Now enter in your deposit (in percentage terms), the interest rate you expect to pay (if you’re unsure, go high rather than low), and the Minimum and Maximum monthly payments. You will now be presented with a range of properties that fit your financial position. You can narrow this list down by entering the various features you want in a property.
Does it work – I entered a search based on 10% deposit, 12% interest, $1000 p/m payments, 5+ bedrooms, 3+ bathrooms and still received a list of 70 properties that matched that criteria – not mansions, but decent properties nevertheless. If you have had minor mortgage issues in the past, don’t give up – be realistic and find properties that fit your circumstances first – then apply for mortgage finance. Do your homework properly and you will impress the lender – and it may help to get you back into home ownership.
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