FAQs – Bad credit home loans – The Happy Finance Company

FAQs – Bad credit home loans

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Embarking on the journey to secure a home loan can feel daunting, especially when your credit history is less than perfect. At The Happy Finance Company, we're committed to guiding you through this process with clarity and optimism. Below, we've compiled some frequently asked questions about bad credit home loans to help you navigate your path to homeownership.

Which lender can help me with a bad credit home loan?

Specialist lenders, often referred to as non-conforming lenders, are your go-to when major banks seem too rigid. They understand that life's journey isn't always smooth and are more flexible and compassionate towards those who have faced financial challenges. While we can't specify names, rest assured that we work with a range of lenders who are empathetic and ready to consider your unique situation.

How to choose the best bad credit lender for your situation?

The 'best' lender is subjective and varies based on your specific circumstances. Consider these factors when choosing:

Eligibility requirements: Lenders have their own criteria, including credit scores, income levels, and debt ratios.
Interest rates and fees: Compare different lenders to understand the potential cost of your loan.
Repayment terms: Consider how the length of the loan will affect your monthly payments and the total interest paid.
Type of lender: Your needs might be best met by a bank, credit union, or online lender, depending on your preferences for rates and customer service.

We are here to help streamline this process, ensuring a smooth journey in your home loan acquisition.

How to refinance a home loan with bad credit?

Refinancing with bad credit is possible, especially when:

Your property's value is more than the amount you owe (ideally 80% or less)

Your credit file no longer shows defaults, or you've paid them off.

You have solid evidence of income.

You’ve been punctual with your repayments in the recent past (at least the last six months).

What information is in my credit file?

Your credit file paints a picture of your financial history. It includes personal details like your name, date of birth, address history, and employment details. It also details your credit applications (as 'Enquiries') over the past five years, along with records of any court judgements, court writs, or bankruptcy history.

How much deposit is required for bad credit home loans?

The required deposit can vary widely based on the lender and your situation. Typically, a larger deposit might improve your chances of approval and secure better terms. Consulting with a mortgage broker can provide insights specific to your circumstances.

How much deposit is required for bad credit home loans?

Proof of Identity: Like a passport or driver’s licence.

Proof of Income: Such as recent payslips or tax returns.

Bank Statements: To showcase your financial history and current status.

Details of Existing Debts: Including loans, credit cards, or other financial commitments.

Additional Documents: As required by your lender’s specific criteria.

We can help ensure you have all the necessary documentation in order.

How long is the application process?

The application process duration can vary, typically taking several weeks from submission to approval. Delays might occur due to the need for additional information or complexities in your application.

Can first-home buyers get a bad credit home loan?

Yes, even as a first-home buyer with bad credit, there are options available. Specialist lenders might consider your application, though the criteria and rates may differ from standard home loans. Consulting with a mortgage broker who specialises in bad credit can provide tailored advice and help assess your eligibility.