Poor Credit Mortgage Loans
If you think that your poor credit score makes it impossible for you to buy a house, think again. There are poor credit mortgage loans available for someone just like you. Poor credit loans tend to have a higher interest rate than those offered to individuals who have good credit. However, once you get into a home in spite of your bad credit, you have the opportunity to raise your credit score with timely payments. Then within a period of time you can refinance your home loan to a more favorable interest rate because of the better credit rating.
If you have bad credit because you are overwhelmed with your bills and are unable to pay them on time, purchasing a house is not something you should be thinking about doing at the present time. You first need to get your financial house in order. Begin to pay down your debt, consolidate bills if possible, try to negotiate lower interest rates for high interest cards and even seek help from a free credit counselor. Once your financial situation is under control and you are actually able to start saving a little money then begin your search for poor credit mortgage loans.
Although poor credit mortgage loans are sometimes available from lenders with 100% financing, the interest rates may be 2% higher than for those with good credit. If you are able to put even 3%-5% of the purchase price as a down payment you could get a much lower interest rate on your mortgage. It might be better to wait out the period of time until you have the down payment for a new home if it means getting a lower interest rate from the start. As stated earlier though, you can find poor credit loans and get in to your home now and refinance later.
The best place to find poor credit mortgage loans is on the Internet. Apply to online to mortgage services that will submit your application to many different lenders. The advantage of this strategy is that your credit report is accessed only once and you have the opportunity to analyze offers from multiple lenders. There is fierce competition for your business from lenders offering poor credit mortgage loans. In the Internet age, you are in control of what lender you choose and there are many out there who want your business. Don’t settle for a mortgage loan until you have gotten many competing bids. With many mortgage quotes to choose from you will know exactly what type of loan is available to you.
Having a poor credit score occurs for many people for reasons that are out of their control. They may have been laid off of work, suffered a major illness or suffered catastrophic loss due to Mother Nature. There are many different reasons and many individual stories of personal specific situations. Lenders who offer poor credit mortgage loans are people too so they are not totally callous to your particular hardship. Be upfront and honest with your application process and you may soon find yourself in the home of your dreams.