Specialist Lender: What is that?
Sometimes a credit default or negative listing is the last thing someone expects to find hiding on their credit report. Luckily, when this happens credit repair companies like ours here at Clear Credit Solutions are here to help. Assisting to remove these negative listings will not only improve your credit score but will also increase the likeliness of you getting approved for a finance application.
That is the positive. The negative is that not everything can be removed from a credit report. There are some listings that have to remain on a credit file and cannot be taken off by a company like ours here at Clear Credit Solutions.
If you have discovered something on your credit report and need credit repair then get in contact with the team after you view some of our useful articles.
Are you in the process of applying for a home loan and wondering what exactly a specialist lender is? If so, keep reading this credit repair article to gain more insight.
People who are self-employed, casually employed or new immigrants with poor credit scores typically rely on loans from non-conforming lenders (also known as specialist lenders) that wouldn’t be approved by mainstream banks. These ‘non-vanilla’ borrowers turn to these types of financing options when their other opportunities fall through.
Mainstream banks might impose strict eligibility criteria before they approve a borrower’s home loan. On the other hand, specialist lenders have much more lenient policies and evaluate individual mortgage applications with consideration of each borrower’s unique circumstances.
For instance, a regular salary verifiable by an employer is often necessary in order to be approved for a home loan. If one’s wage isn’t steady and traceable through payslips from employment, they may struggle to meet the requirements of standard mortgage lenders despite potentially making enough income.
For those who have difficulty providing conventional documents such as payslips, specialist lenders may accept alternative paperwork like tax records and bank account transaction histories to assess a borrower’s income and expenses. These modified home loans are often referred to as low-doc or alt-doc mortgages because they require fewer formalities than regular mortgage applications.
Although these loans may be more accessible to some borrowers, they aren’t necessarily the best options for all homebuyers. Since there is limited evidence demonstrating that the borrower can pay back their mortgage on time, lenders might consider them as having a high risk of default and thus impose higher interest rates or fees than traditional mortgages do.
If you’re unsure if a home loan from a specialist lender is the right fit for your financial well-being, take some time to explore various mortgage lenders and their available services. A knowledgeable mortgage broker can also provide insightful advice on which option best aligns with your needs – making it worth considering in order to make an informed decision.
Here at Clear Credit Solutions, we are the credit repair experts and can help you to remove any defaults or negative listings from your credit file. This way, you can obtain the finance that you need without worrying about your bad credit score. If you have any questions or would like to know more about our services, please don’t hesitate to contact us today. We’d be more than happy to help you with all of your credit repair needs!
Source: Jasper
Credit scores are important because they affect your ability to obtain finance. If you have a bad credit score, it can be improved by removing negative listings from your credit file. Clear Credit Solutions are the experts in credit repair and we can help you improve your score so that you can get the finance you need. Contact us today to find out how to fix bad credit! Call us now or fill out an application form and we will call you.