There can be many reasons why your credit report is negative. A poor credit score can be the result of sudden expenses, medical bills, and late payments. All these problems result in bad credit and when you go out on house hunt, your requests get rejected from the lenders. But it doesn’t mean that a person with poor credit score cannot buy a property. If you are looking to buy home in Bangalore, but feeling inferior due to low credit score, here’s what you should do to buy property.
Step 1. Discuss With The Right People
Meet An Advisor: Don’t just hold your report in hand and sit at home. Go out and meet a financial advisor. Share the details of your credit report and ask them for their suggestions. There are points an advisor can suggest you to emphasizewhen you apply for a home loan.
Meet The Lender: When you meet the lender, do not feel low. Having a bad credit report is nothing you should be ashamed about. But this time when you are sitting with the lender, act smartly. Do not just go and discuss things and return home with a NO.
However, the loan process is mostly automated, but there are parts of the process that are done manually. As a smart home seeker, you can simply show the lender the proofs of the payment where you have been very consistent. It can be the receipts of your rent, EMI payments or some other records where you appear consistent in making payment without any disruptions from your side.
Meet A Real Estate Developer: This step can be taken in the beginning as well. As your target location is specific to Bangalore, meet a trusted real estate developer in Bangalore and when you’re with him, share what you have in mind. Explore the property offers according to your needs and be very clear on the financial terms. There’s is nothing wrong in discussing financial status with a reliable developer as the industry knowledge of the person can help you get the things right back on track.
Step 2. Save Extra For Down Payment
Forget the 20% rule here. Now when your credit score is not showing any mercy, you must save more for the down payment. This way, you can not only increase the chances of getting loan from the lender, but it will also help you take advantage of less monthly payments. When you make a bigger down payment than the traditional pattern, you make the lender believe that you are actually capable of paying for the borrowed amount along with the interest.
Step 3. Get Private Loan
This option can be offered to you by your real estate developer as well. If you are capable of paying a fair amount for the down payment, there are chances that a real estate developer such as M1 Homes in Bangalore can help you secure the right property with the amount you have in hand.
So, it is better not to feel bad about poor credit score. You can instead go out and follow these steps to fulfill your home buying dream even with the bad credit score.