Bank Mortgage Insurance: Options for Damaged Credit Applicants

Bank mortgage insurance is something many people strive to avoid, but if you are an applicant with damaged credit, chances are good you’ll have to get it. The truth is, bank mortgage insurance can be money will spent, bringing you peace of mind and providing a valuable service for your family should the primary breadwinner pass away. You know your mortgage is covered.

The Insurance Cost of Damaged Credit

For most, mortgage insurance is required unless you put down a very substantial down payment on the home for which you need a mortgage. And the insurance cost of damaged credit is time or money. You can still get bank mortgage insurance with damaged credit, but the simple fact is it will cost you more. Two choices will make most sense. You can pay the higher premium or you can wait until you have repaired your credit score.

If you are in good financial shape now, can afford a mortgage, and can afford the mortgage insurance, the higher premium that comes with a damaged credit application won’t matter.

Repairing your credit score and having a stronger application is a longer-term choice. It would be misleading to say you can repair your credit and improve your credit score overnight. It takes times.

Getting Help Before You Decide

It’s true that bank mortgage insurance with damaged credit will take more time or more money or both. But it is also true that lenders want your business. They are not in the business to turn you down but to qualify you for a loan that makes sense for you and offers a reasonable expectation of return for them.

Talk to your lender as a first step. Find out under what conditions you can get your mortgage and bank mortgage insurance with a damaged credit application. Then work out a plan for meeting those conditions.

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Bank Mortgage Insurance: Options for Damaged Credit Applicants

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