A lot of Americans have made mistakes that led them to serve time behind bars. A majority of them have also got their life back on track to accomplish great things like finish school, get jobs, find love, and have a family. They have put the past of having a criminal record behind them. Now you are ready to buy a house and get a mortgage. Should you be worried about your criminal past?
Does a criminal record affect getting a mortgage? Yes, it could affect your ability to get a loan. If a lender runs a background check on you they will see your criminal history. With that said, there are policies on lending with someone with a criminal history and you could be denied a loan because of your criminal past. This is not against the law for this reason. Whereas it is against the law to deny someone based on their race or religion.
Will all lenders run a background check?
No, not every lender will run a background check. In our opinion do not ask if they do either as this will give them a reason to run one on you. You will, however, have to provide certain information like employment history and past residence history. If you were behind bars for a significant amount of time this could come up when you have to provide such information. Be prepared for a credit check also.
Also, remember that this could be a lender-by lender basis. Meaning that you might get denied by one lender and approved by another. It really depends on the lender.
Have you looked into expungement of your criminal record?
Not everyone will qualify for the expungement of their criminal record so know that know. However, it is something that you should look at to see if you meet the requirements to get your record sealed or expunged. This will depend on some factors and what state you are in. But if you can get the record expunged you will not have to disclose the criminal record when someone asks you about it or worry about them finding this data in a background check if someone runs one on you.
Finding a criminal defense attorney who specializes in these types of things would be beneficial as they can help answer the question on if you can expunge your record and what the course of action might be.
The kind of loan matters
SBA loans are guaranteed by the federal government and because of this lenders are typically more strict in regards to someones background or character. Most likely a loan from SBA will ask about your criminal record. However short-term loans usually do not ask about someone’s criminal history but there is a caveat. They come with higher interest rates.
What should you end result be if you have a criminal record?
Know that there are a lot of different things a lender will look at when learning to approve or deny your loan application for a mortgage. If you are a good candidate with good credit history you shouldn’t give up because of your criminal history. You can always work with a company that matches you with lenders and this could be a route to go. Companies could know what lenders are more likely to approve you over others who may not.
Answer honestly about your criminal record with a potential lender if they ask. If you don’t and they find out it will be over before it starts.
It is also beneficial to know that if you do not get approved lenders will not tell you if your criminal history was the reason your load got denied. Usually, you will get answers regarding character issues. Does a criminal record affect getting a mortgage? Unfortunately, it very much can determine if you get approved or denied.
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