This blog will discuss buying a home and getting a mortgage with bad credit in Nevada. Nevada has many amenities, including no state income taxes, few regulations and restrictions, and plenty of job opportunities. We will discuss consumers’ options for obtaining a mortgage with bad credit in Nevada.
Can I Get a Mortgage With Bad Credit In Nevada?
You do not need perfect credit to buy a house in Nevada. Unfortunately, it is becoming increasingly common for consumers to find themselves in this situation. The good thing is that if you have bad credit, you are not necessarily ineligible for a home mortgage. Mortgages for consumers with challenged credit do exist. It doesn’t mean that everyone will qualify.
What Are The Rates and Terms For a Mortgage With Bad Credit In Nevada
Usually, borrowers looking for a mortgage with bad credit must put down a larger down payment than those borrowers with a good credit profile. Another factor to realize is the interest rate will be higher. The reason is a direct result of having credit issues in the past=, such as late payments, charge-offs, collection accounts, judgments, and bankruptcy.
When credit imperfections exist, the consumer becomes a higher risk and is not easily insured, so lenders require more guarantees and a higher return. Other credit impairments reflected on your credit score include IRS debts, repossessions, foreclosures, and short sales.
Best Mortgage Lenders For Bad Credit In Nevada
At Gustan Cho Associates, we work with over 210 wholesale lending partners. We will match you with a wholesale mortgage lender that best suits your needs. The team at Gustan Cho Associates has a business model of being transparent to our clients, associates, and third-party vendors. The team at Gustan Cho Associates are experts in originating mortgage loans other lenders cannot do. Dale Elenteny compares GCA Mortgage Group to our competition:
We are transparent about rates, and fees, and are willing to view you as more than your credit score. We have lenders who will work with all types of different consumer credit profiles going as low as a 500 credit score.
Once we have a chance to review your credit history and evaluate your options, we may recommend credit repair with an affiliate of ours, who will focus on getting your profile to the point where obtaining a mortgage is possible! The team at Aquino Mortgage Group will be with you throughout the process and are always available to answer any questions you may have. Our team prides itself on “our family getting your family home”!
Can I Get A Mortgage In Las Vegas With Bad Credit?
The answer to this question is YES. Many factors are considered in the score of one’s credit profile. This section will discuss some of those factors and suggest ways to approach them. Making payments on time is the most important aspect of the credit scoring equation.
Ensuring all your payments to maintain a high credit score is imperative. With that said, we realize that life throws curveballs, and unfortunately, that is not always possible. According to Experian, one of the three credit bureaus reported, Just one 30-day late payment can hurt your credit scores. Payment history is the most influential factor in calculating your credit score, accounting for roughly 35% of your FICO® Score.
Revolving Credit Utilization- A prime example of Revolving Credit Utilization is credit card balances. In a perfect world, you would pay your credit card bill in full monthly. However, for most consumers, that is not possible.
How To Boost Your Credit Scores Before Applying For Mortgage With Bad Credit In Nevada
Be mindful of your credit card usage and keep the balance as low as possible. The lower your credit card balances, the higher your credit score will be. Length of Credit History – This is a factor that tends to harm young adults who are trying to build their credit. Credit Bureaus calculate your credit score, including when you’ve had open, active accounts. John Strange of Gustan Cho Associates explains how credit works in the mortgage approval process:
The longer you have had a credit account open, the higher your score ( as long as you have good payment history). That is why it is a good idea for parents with good credit to add their children as authorized users to their credit cards, as their history will also report to their children.
Contrary to many beliefs, a consumer’s income is not considered when the bureaus use their equation to calculate your credit score. The abovementioned factors trigger your credit score, which will directly affect your interest rate and the mortgage lender’s perception of your ability to repay them.
What Is The Process Of Starting The Pre-Approval Process
What is the process to get a mortgage with bad credit? When you are in the market to purchase a home with bad credit, we at Gustan Cho Associates try to make the process as simple as possible. Contact us today to set up a free consultation.
Gustan Cho Associates has a national reputation for being able to do mortgage loans other lenders cannot do. We are very thorough when we are qualifying and pre-approving our borrowers. Once we issue a pre-approval, we are not just going to close but close on time.
The mortgage loan application can be completed online and is simple and streamlined. We will carefully review and analyze the data and credit and financial information. Either your assigned loan officer or mortgage process will work together as a team and have a common goal of having a smooth, stress-free mortgage process and home loan closing.
Getting Pre-Approved and Shopping For a Home
The team at GCA Mortgage Group will advise you on your next step. You will either be given a pre-approval letter and the green light to start house hunting, or we will make a list of tasks we need to do to qualify. When we give our client a list, we will walk you through ways to get the list complete. After you have our blessing to start house hunting, we will offer to contact you to a local real estate professional, or you may use one of your own choices to start the house hunting process. We consider the process a team effort, resulting in “our family getting your family home”!
April 15, 2023 - 4 min read