The first step that is taken by many Mortgage Lenders is to review your credit score and credit history. The traditional methods of doing this is involve credit cards or a current mortgage. However, having a nontraditional credit history makes it much more difficult to establish where the credit starts. Thus, being able to find a mortgage lender who will accept you can be a difficult task. However, it is not insurmountable.

How can your payment history can help you secure a Mortgage?

If you have no credit history, you may be thinking that you are ineligible for a Mortgage, right? Wrong! Even without a formal credit history, you will have a history of paying for essentials, including phone bills and rent. Through this, you can boost your credibility/reliability as a borrower. Student loan payments are also factored into your credit score.

“Paying your rent and utility bills on time shows responsibility and tells a story of how well you’re managing those payments – and how well you might manage other debts”.

Rod Griffin – Experian

Why choose a smaller lender?

There are a multitude of smaller, independent lenders who are flexible about working with people who have a nontraditional credit history. Independent Mortgage Brokers, such as Tailored Money, will give you the one-to-one attention that you may need to qualify for a loan should you have no credit history.

Credit Unions are a viable option for raising capital. This is a type of co-operative where members pool money together to offer credit at a lower rates. The only requirement for this path is that you are a member of the union, and membership is often contingent on having something in common with other members, such as living in the same area. Credit Unions are interested in studying your credit history, but are far more flexible in offering loans to those with poor or limited credit history.

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