People who have a bad credit score aren’t necessarily “bad people”, or people who purposely avoid making their payments. Many of them are simply people who have found themselves in one or a series of unfortunate events and are unable to complete their payments on time. Thus, they become marked with bad credit score and are unable to apply for the conventional loans that they might desperately need for one reason or another.
Especially nowadays, when Australia is going berserk over the housing market, and more and more people are taking mortgages. And even though some of them have already taken a mortgage and have been on a good path to pay it off, a simple injury or a job loss could have been the deciding factor whether they could have met all the payment deadlines or not, and now they have a negative credit score.
We all know how major banks and lenders play it safe and are likely to decline any application after you’ve failed to proceed with a few payments. This can be a problem in case you want to refinance. What’s refinancing? It’s getting a new mortgage and replacing the one you originally have. It’s done to allow a borrower to get a better interest rate and terms. This is a good way to get a lower interest rate for people with a good credit history, however, it’s riskier for those with too much debt or less than a perfect credit history.
However, there is one last solution before you give up – bad credit home loan refinance. How do you apply for one? You can do it on your own, but are unlikely to succeed in getting your application approved. Or, you can take a better, safer approach and hire an experienced broker to do it for you.
Why spend money on a broker? Well, it’s quite simple; mortgage brokers are people with tons of experience in the industry who have work experience in the credit departments of major banks. This means they know precisely what’s expected from the applicant, therefore, they can give you the very needed extra edge. A bad credit home loan refinance won’t be that risky when you have a professional helping you every step of the way.
In the end, I think it’s safe to say that you will end up saving money and time by hiring a broker, as you won’t spend hours on end trying to restructure your loan. Plus, there’s still the risk of you not being able to obtain a new and better interest rate, which can eventually put you in an even more unfavourable position.