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Tips on Getting the Best Bad Credit Mortgage
Author David Schneider | May 23,2007
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The Mercers had two kids and one on the way. They were renters and had never owned their own home. However, they felt that they were ready to own one. The young family had absolutely no debt because they had always paid cash for their purchases. They had saved for a down payment for the last two years and they had put aside about $10,000. They felt that they were prime candidates to qualify for a loan, but when they talked to a lender, they found out that their no credit policy had actually hurt their credit rating. They didn't have a credit history that lenders could look at to determine their credit worthiness. The lender suggested that they work with a mortgage broker and that they try for a non-traditional loan. When they talked to a mortgage broker, she gave them tips on getting the best bad credit mortgages, and helped them to find a great mortgage product that took advantage of a first time homeowner's program.
Take Advantage of First Time Homeowner Programs
If you are a first time homeowner, then you should take advantage of first time home owner mortgage programs. The federal government or not-for-profit organizations usually subsidize these programs. Usually to get these loans you have to be a first time homeowner, have five percent to put down on your property, attend home buying counseling or classes and meet credit and income requirements. While these programs do have credit and income criteria that you will need to meet, they are generally less strict than those required by other loan programs.
Improve Your Credit Score
Your credit score is going to determine what interest rate you are charged. To get a desirable bad credit mortgage you should try to improve your credit as much as you can before you apply for a mortgage. By improving your credit even by 10 points, you can lower you interest rate by half a point or more. You can also improve your credit score by paying all of your credit card payments on time, by paying down your credit card balances and by correcting any errors on your credit report.
Shop Around
Yes it is true that shopping around is a great way to find the best deals. After all, if you don't know what rates your lender's competition is charging, how do you know you are getting a good deal? You can shop around by requesting a loan quote from a number of lenders or by using the multiple mortgage quote referral service offered by QuoteMatch.com
Let QuoteMatch.com Do the Legwork for You
QuoteMatch.com is a mortgage quote referral service. To use the service you need to visit their website, fill out a mortgage quote request form, submit it to QuoteMatch.com and wait for your quotes to roll in. Get the best bad credit mortgage now. Go to QuoteMatch.com today. |
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