Taking a mortgage is never easy. There is a lot that you have to keep in mind. You have to plan out your finances for the next few years. When you have been turned down by a traditional lender finding a financing option can be quite a task. If for any reason you are considering financing options from a B Lender, you should always reach out to a Certified Mortgage Broker. They will help you be in touch with B lenders offering private mortgages. When should you consider taking a private mortgage from a B lender? We are discussing two of the main situations when reaching out to a B lender for a mortgage would be a great idea.
Poor Credit score
Credit Scores are the reflection of your ability to handle your finances. Hence, a credit score plays a significant role in getting a mortgage. Several factors are accounted for by your credit score. They include duration of the credit, the ability to keep up with the payments, payments you have missed, any debt referred to a collection agency, defaulted loans and existing balance. All of these things are put together with help in the calculation of your credit score. When you plan to take a mortgage either from a traditional lender or a private one, both of them will go through your credit score. This will help them to decide whether they should give you the mortgage or not. If you have low credit scores then A lender might not agree to provide you with a loan. However, that is not the case with B lender. With a B lender, you can still qualify for a mortgage but with a high-interest rate. The lower the credit score, the higher the interest rate. The higher the credit score, the lower the interest rate. The traditional institutions require a minimum score of 680. Whereas, B lenders also consider the value of the collateral against which you are taking the mortgage.
Unconventional Sources of Income
When you are self-employed, it can be difficult to secure a loan from a traditional lender. They ask for tax returns and financial statements for the last two years. This works as proof of your earning. However, if you have been self-employed for less than two years or have an alternate source of income that supplements your current one, it can be difficult for you to get a mortgage from a traditional lender.
However, B Lenders don’t have any such requirements. There are no strict rules for those who are self-employed. Even if you have been self-employed for less than two years, you can still take a private mortgage from a B lender. They also give mortgages to those borrowers who rely on commission-based salaries. Apart from unconventional sources of income, the B lenders also take into consideration unconventional collaterals. When it comes to rules of lending, the B lenders are flexible. It becomes easier to take a mortgage from them.