Almost Anyone Can Qualify For Bad Credit Mortgage Loans
If you have bad credit you likely believe that you will never be able to qualify for a mortgage loan. Luckily for you there are several options for people to qualify for a bad credit mortgage loan. So don't be disheartened and give up. When it comes to loans, persistence pays off in a big way.
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.
Since most people with a credit score of 500 do not qualify for even a bad credit mortgage loan we need to fix our score. If you fit in this category then you are likely in luck as the steps are not that hard to get a score above 600.
The initial step is to go to your mortgage broker and ask for a credit report. Yes, you could use another service but they will charge money for it. A mortgage broker has an incentive to give it to you for free. He wants to sell you a bad credit mortgage loan.
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.
If you have been penalized due to late payments then you will want to call your credit card companies and find out how many on time payments in a row you must do before they take the penalty off of your credit history.
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 don't qualify then talk to your mortgage broker to see if there are other options available to you. In a lot of cases you can get a home with a high interest rate. You can also buy your house the old fashioned way by putting 20% or more on the down payment. The days of the super easy loan may be over but you can still get bad credit mortgage loans.
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.
Since most people with a credit score of 500 do not qualify for even a bad credit mortgage loan we need to fix our score. If you fit in this category then you are likely in luck as the steps are not that hard to get a score above 600.
The initial step is to go to your mortgage broker and ask for a credit report. Yes, you could use another service but they will charge money for it. A mortgage broker has an incentive to give it to you for free. He wants to sell you a bad credit mortgage loan.
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.
If you have been penalized due to late payments then you will want to call your credit card companies and find out how many on time payments in a row you must do before they take the penalty off of your credit history.
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 don't qualify then talk to your mortgage broker to see if there are other options available to you. In a lot of cases you can get a home with a high interest rate. You can also buy your house the old fashioned way by putting 20% or more on the down payment. The days of the super easy loan may be over but you can still get bad credit mortgage loans.
About the Author:
Roger teaches people about mortgage loans bad credit and about equity based home loans for bad credit.
posted by Debt Consolidation Loan at
1:09 PM
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