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How to qualify for mortgage with Bad Credit history?


How to qualify for mortgage with Bad Credit history?

How to qualify for mortgage with Bad Credit history?

According to real estate experts and performance reports, Abu Dhabi property market is showing the signs of recovery. Savvy investors and buyers are flying back to set up their businesses and buying properties over there. Albeit the prices are not back to pre-crisis level but it is not easy for everyone to buy properties on their own. Real estate loan and mortgage is the only option that can help such people to buy properties. This becomes especially hard if you have bad credit history.

People applying for mortgage with bad credit scores remain uncertain about the approval or disapproval of their loan application. Almost every applicant with bad credit history feels the same. Even in this desperate situation, there are reasons to cheer up and apply for mortgage loans confidently. Certain factors are involved that can make the task of securing loan easy so that one can invest in Abu Dhabi properties. Let’s review some of these factors:

Reliable Employment is appealing to lenders

Income is certainly an important factor for the lender before giving you a loan but regardless of how much you earn, reliability of employment is more important for lenders, especially for those with bad credit. Therefore, before applying for mortgage with bad credit, make sure you can prove the reliability of your employment. It is because the lender wants the borrower to repay the mortgage amount without any snag.

For instance, the applicants who have recently started a job, get little preference, even if they earn better those who have been working in the same place for months or years. The lender usually demands a letter of assurance from the employer as a proof of long-term employment.

Improvement in credit score is significant for lender

The credit score may not matter a lot for people who are regularly repaying their loan but it says a lot about the loan applicant who has applied for mortgage despite having bad credit score. People making efforts to improve their credit score are highly valuable as it indicates that situation that contributed to a bad credit score can get better. If you want to secure approval for mortgage despite having bad credit scores then you must take some proactive steps that can improve your credit score.

For instance, to return the old loan before applying for mortgage, you can take a personal loan to repay quickly and improve the credit score, instantly. These efforts show that you are ready to take mortgage and committed to repay it without skipping any repayment.

Hefty Down Payment is impressive for lender

Out of all practical and positive steps that an applicant with bad credit score can take, the most important one is to make a hefty down payment. It is the most impressive thing for a lender from a borrower’s side. The huge down payment means that the mortgage amount will be automatically reduced. It also means that lesser risk is involved from lenders’ side regarding their money.

The other aspect of hefty down payment is that lenders can trust the borrower for their money. Now it is up to you how you can take proactive steps to negate the impact of bad credit scores on your application.

 

How to qualify for mortgage with Bad Credit history?

 

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