{"id":2046,"date":"2020-12-30T08:51:24","date_gmt":"2020-12-30T04:51:24","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=2046"},"modified":"2020-12-31T07:39:50","modified_gmt":"2020-12-31T03:39:50","slug":"how-to-get-mortgage-loan","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/","title":{"rendered":"How to get mortgage loan if you have \u201cbad \u201ccredit score?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Homeownership will build your wealth. But in the process of owning a home, many of us will not have a sufficient lump sum amount and eventually we apply for a mortgage to fulfil our dream of owning a home. But it is not guaranteed that your loan application will get approved.<\/span><\/p>\n<figure id=\"attachment_575\" aria-describedby=\"caption-attachment-575\" style=\"width: 512px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-575\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2020\/06\/trendy-isometric-people-d-businessman-big-pile-cash-hundreds-dollars-bank-deposit-loan-mortgage-gold-award-trendy-135205990.jpg\" alt=\"how to get a mortgage loan\" width=\"512\" height=\"512\" \/><figcaption id=\"caption-attachment-575\" class=\"wp-caption-text\">how to get a mortgage loan<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2328d750231\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2328d750231\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#When_are_your_credit_scores_too_low_to_qualify_for_a_mortgage\" >When are your credit scores too low to qualify for a mortgage?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#How_to_Qualify_for_Mortgage_with_a_Low_Credit_Score\" >How to Qualify for Mortgage with a Low Credit Score<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#Larger_Down_Payment\" >Larger Down Payment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#_Cash_Reserves\" >\u00a0Cash Reserves<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#Rent_history\" >Rent history<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#Get_a_co-signerco-borrower\" >Get a co-signer\/co-borrower<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#Should_you_take_out_a_mortgage_with_bad_credit\" >Should you take out a mortgage with bad credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#If_your_mortgage_payments_will_exceed_around_30_of_your_monthly_income\" >If your mortgage payments will exceed around 30% of your monthly income.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#If_youre_offered_a_mortgage_only_at_a_very_high-interest_rate\" >If you\u2019re offered a mortgage only at a very high-interest rate.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/moneymall.ae\/credit-blog\/how-to-get-mortgage-loan\/#If_your_credit_scores_are_low_because_you_have_trouble_paying_bills_or_have_a_lot_of_debt\" >If your credit scores are low because you have trouble paying bills or have a lot of debt.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">In the UAE, <\/span><span style=\"font-weight: 400;\">Many of the mortgage loan applications are being rejected due to <\/span><b>bad credit<\/b><span style=\"font-weight: 400;\"> score or overleveraged credit profile.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Getting a <\/span><b>bad credit mortgage<\/b><span style=\"font-weight: 400;\"> is almost hopeless in today&#8217;s marketplace. There are over 30 lenders in UAE offering a variety of mortgage packages, They will first check your credit history including credit card debts and limits to evaluate your creditworthiness. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">They only approve your loan application if you have a good enough credit score.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"When_are_your_credit_scores_too_low_to_qualify_for_a_mortgage\"><\/span><b>When are your credit scores too low to qualify for a mortgage?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Before approving a mortgage the banks will pull your <\/span><b>credit score<\/b><span style=\"font-weight: 400;\"> from Al Etihad Credit Bureau (AECB) Credit report. Where they look into your <\/span><b>credit score<\/b><span style=\"font-weight: 400;\"> determine your creditworthiness. Many banks consider the credit score above 580 to approve a loan. In the UAE, no banks will avoid your credit score and provide an unsecured loan.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Getting a home loan at less than 600 credit score will make you have to pay higher interests than the standard interest rate of a mortgage and could put borrowers at risk of default. So it is best to wait to buy a home until your <\/span><b>credit scores<\/b><span style=\"font-weight: 400;\"> improve rather paying higher interest rates on your mortgage.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Qualify_for_Mortgage_with_a_Low_Credit_Score\"><\/span><b>How to Qualify for Mortgage with a Low Credit Score<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Skyrocketing rent prices have pushed more people toward purchasing a home. People are feeling comfortable with higher interest rates, as it turns out to be a better deal to build equity at similar monthly prices. But what in the case to qualify for a <\/span><b>bad credit mortgage<\/b><span style=\"font-weight: 400;\">. here are some tips to qualify with low credit scores.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Larger_Down_Payment\"><\/span><b>Larger Down Payment<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This will help you in many ways because the large down payment reduces the risk for the lender. An excellent figure is 20%, which allows you to avoid private mortgage insurance (PMI).<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"_Cash_Reserves\"><\/span><b>\u00a0Cash Reserves<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Even after making a large down payment, it is good to have ample cash reserves on hand. This will make lenders comfortable that you can absorb the unexpected, such as maintenance cost of any damaged furniture etc.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Rent_history\"><\/span><b>Rent history<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Be able to verify that you\u2019ve paid your rent on time consistently for 12 to 24 months. This will make banks that you pay your rent instalments at any cost by where you, it will be exchanged into mortgage repayments.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Get_a_co-signerco-borrower\"><\/span><b>Get a co-signer\/co-borrower<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0A co-signer agrees to take legal responsibility for repaying the loan if you can\u2019t. So asking some for a cosigner is a big deal. So have an honest conversation with your cosigner that how you\u2019re in a need to take this loan.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Should_you_take_out_a_mortgage_with_bad_credit\"><\/span><b>Should you take out a mortgage with bad credit?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It is to be kept in mind that applying for a <\/span><b>bad credit mortgage <\/b><span style=\"font-weight: 400;\">will let you fall in high risk of paying huge interest rates. Though you find out you are eligible for financing. There are some circumstances that you should probably decline to borrow.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"If_your_mortgage_payments_will_exceed_around_30_of_your_monthly_income\"><\/span><b>If your mortgage payments will exceed around 30% of your monthly income.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It might be difficult for you to afford the payments, which could put you in risk as you need to pay other bills too which may cost you high. If you exceed all your payments more than 50 % as per central bank regulations you are not eligible for any new credit(this may ruin you at the time of emergency).<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"If_youre_offered_a_mortgage_only_at_a_very_high-interest_rate\"><\/span><b>If you\u2019re offered a mortgage only at a very high-interest rate.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As said that you are forced to pay higher monthly payments, and your loan will cost more over time. So it better to wait until your score improved.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"If_your_credit_scores_are_low_because_you_have_trouble_paying_bills_or_have_a_lot_of_debt\"><\/span><b>If your credit scores are low because you have trouble paying bills or have a lot of debt.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In this situation, you are not recommended to take a mortgage loan. As this loan abides with long term payments and may bring a financial obligation in future.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Homeownership will build your wealth. But in the process of owning a home, many of us will not have a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":575,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5,4],"tags":[513,514,10,85,335],"class_list":["post-2046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgages","category-credit-score-report","tag-bad-credit","tag-bad-credit-mortgage","tag-credit-score","tag-interest-rates","tag-mortgage"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=2046"}],"version-history":[{"count":4,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2046\/revisions"}],"predecessor-version":[{"id":2057,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2046\/revisions\/2057"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/575"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=2046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=2046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=2046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}