Are you thinking to purchase a new home for your family? Not sure if the loan will get approved by the bank or not? Don’t worry you came to the right place, where all your questions will be answered by us through this article.
So, how can the loan get approved with fewer legal documents? As I said your questions will get answered, but before getting into the solution let’s just understand what bad credit score means.
Banks usually determine the points of the applicant who applied for the home loan by analysing his/her previous financial and credit history. There are a few aspects on which the criteria is based on. Let’s just take a look at the things due to which they give bad credits to an applicant :-
- Overdue debts on previous loan
- Application for various credits
- Previous credit application got rejected several times
- Default information
According to the above criteria, a bank decides the points that fit best for the applicant position. If the points stay lower than 600, then it is considered as an extremely poor application by the bank. If you’re able to get 700 or more than 700 points, then you are in for a win win situation.
This doesn’t imply that you cannot get the home loan this time. Maybe you have suffered the last time due to critical financial condition or something. I’m here going to tell you the ways through which there is a possibility of you getting the loan approved from the bank, despite having bad credits in your account.
Let’s have a look :-
Higher interest rate
What they do is, they check the credits of the applicant by going through their records and financial condition, then provide the loan to the applicant at a higher interest rate. It has a direct relationship with your past records. If you have more previous payments default then they will charge more interest from you for the loan.
These types of loan easily get approved as, they give the loan on the basis of assurity which is given by the applicant in the form of some asset. There is no hassle of credit card or documentation. You will get the loan easily but you need to be 200 percent sure, that you will be able to return the amount in a given period of time. Otherwise the lender will sell the house or the asset that you gave as an assurity.
Salary loan (payday)
Another kind of loan that can get you the amount you are aiming for from the bank. Pay 6 Day is a loan where the lender gives the money on the basis of your salary account. You need to fix the date on which you will be able to pay the amount of the loan. The interest is quite high, so one needs to be very careful before taking this risk. The lender will deduct the loaned amount and interest on the date you committed to. The penalty is very costly that would not be easy to afford.
Getting a home loan even with bad credits is not an easy deal but possible to achieve. Hard money loan rules in Florida are quite decent, as you are able to get the loan at a quite lower interest rate than the other cities. So conduct a research before you apply for a home loan with bad credit score in Florida, as there are chances to get the best in the least.