Can You Apply for a Utah Mortgage with a Bad Credit?

mortgage loan in UtahThinking of applying for a mortgage in Utah? Then you need to ask this question: do I have a bad credit score? In the world of mortgages, credit scores matter. Banks and other types of lenders use them to gauge your risk level and your capability of paying off the loan. It makes perfect sense if they avoid those with low scores.

But what is a bad credit score? If you have one, does it spell the end of your mortgage dreams?

Defining the Term

Many lenders use the term “bad credit score,” but the truth is there’s no exact definition for it. It depends on many factors including the mortgage requirements for every lender. On the average, however, it is anything lower than 682 (although other lenders may consider scores 579 and below as bad).

How can you acquire this score? Determining the actual score is a complex process, and usually, it has something to do with your credit history. If you failed to pay off your mortgage, you declared bankruptcy, or you are always late with your repayments, you are more likely to get a low score.

Can You Apply for a Mortgage?

Having a bad credit score doesn’t mean you can no longer apply for a mortgage, but you need to be realistic: the journey may not be easy. Many banks may deny your application or provide you with a short payment term and loan amount. Others will give you a high-interest rate.

If you have a bad credit score, work with a mortgage loan company like City Creek Mortgage in Utah, which can help you in the loan process such as shopping for lenders. The more banks you approach, the higher the chance you’ll come across lenders that have special programs for those with bad credit.

Do you have a bad credit score? Don’t wait until later to do something about it. Work with mortgage professionals who can help you find a good solution to your issue.