Most people have better credit than they anticipate. People of several varieties of credit ratings can get mortgage financing for their homes. However, those with the best credit generally get better interest rates. Even with bruised credit, someone can qualify for a loan if they have a large enough down payment, or other circumstances that reduce the risk of default on payments. Our Loan Officers are thoroughly trained in how to evaluate a person’s credit and financing objectives to help them find the best solution for their needs.
Regardless of your credit score, you have the opportunity to explain why certain payments were made late (perhaps you were in transition between jobs, or traveling out of the country for 2 months). Most lenders don’t consider debts to medical providers as particularly alarming. And, if you increase your down payment, or accept a higher interest rate, you can still obtain a mortgage to allow you to purchase the home of your dreams.
In some instances, Providential will advise clients to settle outstanding obligations and cancel some installment credit accounts (like a department store or gas card) prior to applying for a mortgage.
If you are uncertain about your credit situation, we encourage you to contact a professional at Providential to review the situation and offer advice and guidance. Additionally, you should obtain a Free Copy of Your Credit Report through Providential.