Home Equity Loans
A home equity loan is a mortgage loan that uses your home as collateral. A home equity loan does not affect your first mortgage. The payments are made completely separate from each other. A home equity loan is a stand alone mortgage. At Turnedaway.ca, we get a lot of inquiries about home equity loans with no credit check. The irony of a no credit check home equity loan is that lenders don’t care about bad credit. Home equity loans are approved on equity, not income or credit.
What type of mortgage lenders offer no credit check home equity loans?
There are actually very few mortgage lenders who offer home equity loans without a credit check. Only private mortgage lenders offer no credit check home equity loans. The problem with this concept is that you may be missing an opportunity to get a better mortgage. If you don’t have a mortgage broker look at your credit rating you may end up with a mortgage that has a higher interest rate or doesn’t suit your needs. Just because you have bad credit does not mean that a private lender is your only option.
An experienced mortgage broker may be able to place your bad credit home equity loan with an alternative lender like a trust company or credit union. Anyone considering applying for a home equity loan without a credit check should approach the service with caution. Home loans with no credit check do not serve a homeowners best interests. What you should be asking for is a bad credit home equity loan and be open to having a professional look at your credit rating.
If credit is not part of the home equity loan approval process why do most lenders insist on checking it?
It is true that most lenders don’t base home equity loan approvals on credit. That being said, a credit check can determine more than just your credit score. A credit check can reveal a lot about a borrower. It allows a lender to determine if you are attempting to commit mortgage fraud. A credit report will also tell a lender if you have any liens or writs against you that will need to be paid from the home equity loan proceeds. Lenders prefer to check credit because it saves time and ensures they are not being defrauded. It also serves a borrower’s best interests because it ensures they are getting the best mortgage they qualify for.
I have bad credit and I don’t want to make it worse with a credit check.
Home equity loans with no credit check sound appealing but they don’t really serve a purpose. While a credit check can lower your credit score, the benefit to doing one outweighs any negative consequences. By having a professional mortgage broker review your credit, they can help you repair any bad credit you may have. They can also point out any discrepancies in your credit which are lowering your credit score. An experience mortgage broker can also warn you about any fraud activity that they notice.
A mortgage broker who specializes in bad credit home equity loans will also ensure you are not missing out a better deal. Because mortgage brokers have no allegiance to any lender they will shop your application around to make sure you are getting the best deal possible. Home equity loans with no credit check may seem like a good idea but you may doing more harm than good.
Why Choose Turnedaway.ca?
The name says it all! We specialize in hard to place mortgages and want to make sure you are getting the best deal possible. Checking your credit might be a mandatory of our application process but isn’t it nice to know that you’ll be working with someone who actually cares. At Turnedaway.ca, we want to help you fix your credit. We want to ensure that you are getting the best deal possible. It makes our clients happy and makes us look good. If you’re in the market for a home equity loan but concerned you may be declined because of your credit, stop worrying. Let us work on your approval and walk you through the process of repairing your credit rating. Call us toll-free at: 1-855-668-3074 or simply apply online and let us show you why we are Canada’s premier home equity broker.