How a Mortgage Broker Can Help Clients with Bad Credit

• June 20, 2019

As a mortgage broker, there are instances when you will come across clients who have a low credit score but are interested in getting lending facilities. It is for such people that bad credit loans exist and as a broker, you also have a role to play in helping them to find a mortgage. With your professional skills, experience, and network, here are some of the things you can do to help this group of clients:

Help them check their credit score

The first step towards helping clients in need of mortgage with bad credit score is to help them understand their credit score. Though this seems like a straightforward thing, most of these people never understand the implication of having such low scores. As a broker, you can not only help them know what their score is, but also make them understand how things may play out when they decide to shop for loans. By understanding the implications of their score, it will be easy to explore the various bad credit mortgage lenders they are likely to find success with.

Help in finding bad credit mortgage lenders

As a broker, you probably have contacts or at least know a couple of private mortgage lenders that would be willing to work with some of your clients. Your recommendations will not just have more weight for the clients, but will also shorten the time they would have spent in shopping and evaluating lenders they can work with.

Give advice on the down payment

Low credit scores mean that the lender has a higher risk, and as such, most of them will demand a larger down payment. Your client may not be aware of this, and it is imperative that you inform them how the amount of down payment they have may impact the amount of mortgage they may access. Take them through the various scenarios so that they have a very good understanding of why they may want to consider having a huge down payment in place.