Despite the seemingly promising upstream motion of economics in recent years, the number of people with less-than-perfect credit histories is still steady. We deduce it has more to do with proper information and literacy when it comes to finance driving consumers into sinkholes and trapdoors.
Nowadays, mortgage companies are becoming more cautious about who they lend to. While we can confirm this, it is also something that is rather easy to explain. One bad debt is a black mark on any financial record, which translates to us as a red flag.
If you had your financial record smeared due to a previously bad decision or misinformation, you’re likely going to have a hard time getting hold of a mortgage. In plain terms, here’s why:
What a Good Debt is Not
A bad debt is called bad for a reason. Compared with good debt, it represents a tough time when you took something you couldn’t afford and something that could have drained your wealth. Bad debts are also likely to have no realistic repayment plans and are often due to impulse purchases.
Your financial record is not only a representation of what you have, but of your character as well. Some lenders either take a squeaky-clean credit history or they don’t take you in at all. Whether it was tough time or a bad measure of judgment, a bad debt in your history will send your loan chances into freefall.
A Patchy Credit History
However, despite the pessimism of most lenders to people with patchy credit histories, there are still certain home deals available, although only very little. Lenders today are pickier than before because they’ve gone through the bites of recession and difficult clients before.
Altius Mortgage Group is Utah’s premier loan resource and service provider. Although we are wary of our clients, we want to give each of you a chance to communicate your problems and your needs. We try our best to find each of you a solution that works for all of us involved.
Contact us today and see what our 5-star rating is all about.