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.
Most people that can't initially qualify are going to take the same first step. They need to get a copy of their credit report. After all if you don't know what is wrong with your credit then you will have a hard time getting it fixed.
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.
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.
If you have been penalized due to late payments then you have an easy fix. Simply call your credit card companies up and find out how long you have to make payments on time before they will lift the penalties.
Usually it is three to six months before they lift the penalties. After you have been a diligent bill payer your credit score will start to climb. If you have any unsettled debt now is a good time to pay those as well to raise your score even more.
Now that you know how long you need to make timely payments you now just have to do it and pay on time. Once you have paid your bills on time for a long enough period of time, usually six months, you are now ready to re submit your application for a bad credit mortgage loan.
If you still can't qualify for a loan due to payment defaults then you still have some options. In most cases you will be best served to see if your mortgage broker has a special service for people with bad credit. The fees will be a bit higher but you will be able to get into a new home.
Most people that can't initially qualify are going to take the same first step. They need to get a copy of their credit report. After all if you don't know what is wrong with your credit then you will have a hard time getting it fixed.
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.
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.
If you have been penalized due to late payments then you have an easy fix. Simply call your credit card companies up and find out how long you have to make payments on time before they will lift the penalties.
Usually it is three to six months before they lift the penalties. After you have been a diligent bill payer your credit score will start to climb. If you have any unsettled debt now is a good time to pay those as well to raise your score even more.
Now that you know how long you need to make timely payments you now just have to do it and pay on time. Once you have paid your bills on time for a long enough period of time, usually six months, you are now ready to re submit your application for a bad credit mortgage loan.
If you still can't qualify for a loan due to payment defaults then you still have some options. In most cases you will be best served to see if your mortgage broker has a special service for people with bad credit. The fees will be a bit higher but you will be able to get into a new home.
About the Author:
Roger knows a lot about mortgages bad credit and other types of home loans with bad credit.
posted by Debt Consolidation Loan at
3:42 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home