My Jar Loans best alternative
Even if you have missed payments or defaulted in the past, you might still be able to get a loan to help finance your home purchase. There are steps that you can take and places that you can go to improve your chances of getting a home loan despite having a lousy credit rating.
Here are four steps that can be used to secure a home loan at something other than a ruinous cost:
You need to demonstrate two facts if you are seeking a home loan despite having less than spectacular credit. First, you need to show that you are a reliable individual who can be trusted to honor your business agreements. Second, you need to show that you have enough income relative to your existing debt obligations to take on the additional debt of the home loan. Utility bills, particularly those for long-established business agreements, are excellent documents for proving the first, while pay-stubs, income statements, and income tax returns can be used to demonstrate the second. Similarly, bank statements are a good way to demonstrate both facts, particularly if you intend on approaching the bank listed on said statements.
Finding a Co-signer
Getting a co-signer is one of the best methods that can be used to persuade lenders to take you on as a customer. Of course, the co-signer needs to be an individual with a good credit rating because having someone with bad or even no credit rating isn’t much better than having no co-signer at all. This is because the co-signer is the individual who is expected to take up the burden of the home loan if you default on your debt obligations. The lender has little reason to reconsider if the co-signer has no resources and is known to have defaulted on his or her past debt obligations.
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