Loans
Bad Credit Home Purchase Loans - 3 Things You Should Know
Bad credit doesn?t have to dampen your dreams of purchasing a home. With a little bit of investigative work on your part, you can find relatively low rates. You can also improve your home loan application with a few tricks. Don?t forget that you can improve your credit rating in as little as two years and qualify for a low rate refinance package. These three things will ensure that you get your home at a reasonable price.
1. You Don?t Have To Pay High Rates
A common misperception is that if you have bad credit, you will pay dearly for a home loan. Even with a poor credit record, you can find sub prime loans only two or three points higher than conventional loans.
Another misperception is that a bankruptcy or late payment means you have bad credit for seven to ten years. Not true. While such information will be on your record for several years, you can still have a good credit rating.
The best way to determine your credit record is to get a free copy of your credit report from the consumer credit agencies. You can also purchase your credit score info, or get it free from a credit monitoring service. With your credit report, you should also check for any errors and get them fixed.
2. You Can Improve Your Application
Your credit score isn?t the only thing that affects your mortgage application. Your employment history, assets, and cash reserves are also important.
Having six months of cash reserves, such as savings, CODs, or money market accounts, can also qualify you for better rates. Down payments will also affect your rates. The larger the down payment, the better the rates.
Picking an adjustable rate mortgage is also easier to qualify for since monthly payments are relatively low with this type of financing. Just be prepared for larger monthly payments if market rates rise.
3. You Can Have Good Credit In Two Years
Once you have signed for your mortgage, remember that you can refinance in two year for better rates. During that time you can improve your credit score by making regular monthly payments and paying off short term debt.
Before signing for any mortgage, first check the rates of several lenders. A little comparison shopping now can save you thousands of dollars in the future.
Here are our recommended subprime mortgage lenders, Recommended Bad Credit Mortgage Lenders.
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Carrie Reeder
Tags: bad credit mortgage loans, home loans, subprime lenders, poor creditSimilar articles
Bad Credit Car Loans: Your Financial Ally To Buy Car Despite Of Bad Credit
Human desires are endless and can arise at any point of time. However, today cars are not considered mere desires but a need for your daily life. You need them for your every household and sometimes for commercial usages as well, but it is hard to afford cars especially for those who have a bad credit past. Read more →Bad Credit Debt Consolidation Loans Lessen Loan Load
Do you have numerous unpaid debts? Do you dream of being debt free? Is your poor credit score hindering to avail loans? Do you want to improve it? Then apply for a bad credit debt consolidation loan - a rewarding chance for bad credit borrowers to recover their credit score. Read more →Bad Credit Homeowner Loans: Maneuvering Bad Credit Towards Reconstruction
Bad credit is making you sweat with the heater turned on. That should not be happening if you own a home. A homeowner with poor credit has hoards of options categorized under the name of bad credit homeowner loan. Read more →Bad Credit Loan - A Friend in Bad Times
Bad credit loans are the loans that are offered to those borrowers who have a bad credit history. A bad credit history includes arrears, default, county court judgments, bankruptcy, etc. Read more →Aphorism
The intuitive mind is a sacred gift, and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift.
Albert Einstein