The Truth About Bad Credit Mortgage Loans
If you have bad credit and want to get a mortgage loan do not despair. There is still hope. In fact there are several ways that you can still qualify for a mortgage loan. So let's look at what is one of the best and cheapest options.
If you are one of the people who doesn't initially qualify for a bad credit mortgage loan it is time to look at a few of the steps necessary. The first step when you have been denied a mortgage loan is that you need to get a credit report.
Most people that don't immediately qualify for a mortgage loan due to their bad credit have scores in the 500 range. If this is you then you are in luck. If your score is in the five hundreds then it shouldn't take more than a year to get it to 600.
First you have to get your credit report. You can usually get a free one from any mortgage broker. Mortgage brokers aren't credit specialists by trade but since they need to look at it to try and give you a loan they are a great free source of credit info.
Now that you have a report it is important that you look at each detail. Make sure that everything is accurate. If it is then look for why your score is so low. Usually it is due to late payments. Sometimes it is due to defaults. If it is due to late payments then we have an easy fix. Defaults take a bit more time to get fixed.
When your main penalties are because of late payments you can easily fix it. Just call your credit card company and find out how long you need to pay on time to get the penalty removed.
Once you have improved your credit score you have a far better chance at qualifying for a bad credit mortgage loan. Now you need to go back to your broker and re-apply for a loan. If your score is at 600 or above you will have a really good chance.
If you still do not qualify then talk to your mortgage broker on what other options you have. A lot of brokerages have special programs set up to give you a bad credit mortgage loan. Yes, the fees can be high but you will be able to get your home and once your credit is fixed you can get lower fees.
If you are one of the people who doesn't initially qualify for a bad credit mortgage loan it is time to look at a few of the steps necessary. The first step when you have been denied a mortgage loan is that you need to get a credit report.
Most people that don't immediately qualify for a mortgage loan due to their bad credit have scores in the 500 range. If this is you then you are in luck. If your score is in the five hundreds then it shouldn't take more than a year to get it to 600.
First you have to get your credit report. You can usually get a free one from any mortgage broker. Mortgage brokers aren't credit specialists by trade but since they need to look at it to try and give you a loan they are a great free source of credit info.
Now that you have a report it is important that you look at each detail. Make sure that everything is accurate. If it is then look for why your score is so low. Usually it is due to late payments. Sometimes it is due to defaults. If it is due to late payments then we have an easy fix. Defaults take a bit more time to get fixed.
When your main penalties are because of late payments you can easily fix it. Just call your credit card company and find out how long you need to pay on time to get the penalty removed.
Once you have improved your credit score you have a far better chance at qualifying for a bad credit mortgage loan. Now you need to go back to your broker and re-apply for a loan. If your score is at 600 or above you will have a really good chance.
If you still do not qualify then talk to your mortgage broker on what other options you have. A lot of brokerages have special programs set up to give you a bad credit mortgage loan. Yes, the fees can be high but you will be able to get your home and once your credit is fixed you can get lower fees.
About the Author:
Roger shows people howmortgage loans for bad credit can be used and how equity home loans bad credit can get you into a home.
posted by Credit Counseling at
1:10 PM
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