Bad Credit Mortgage Company - If you are in the position of having to obtain a mortgage with bad credit, dont let the stress of the situation make you feel rushed. In reality, your credit is probably not as bad as you think it is. Work with a professional who makes you feel comfortable and takes the time to make sure you understand your options. Avoid working with bad credit mortgage companies that try to rush the process or force certain loan options on you.
Refinancing a mortgage to help pay off debts, often called a debt consolidation refinance, is an excellent way to make a bad credit mortgage work to make you a good credit borrower over time. Paying off credit card bills & high interest personal loans is a great use of bad credit refinance loans.
There are literally thousands of mortgage companies out there that provide financing for people with bad credit. Some of them will try to take advantage of people in a bad situation while the majority of them will try to help you out to make sure you are being placed into a better situation. Don't let anyone take advantage of you and definitely don't sign the closing paperwork if the terms of the loan are completely different than what you were expecting. If the deal sounded too good to be true, chances are it was. If you can take your time when deciding to work with a mortgage company. Make sure that you feel comfortable and that you can trust the mortgage professional that you are working with. For a free mortgage quote from a company that you can trust contact me at 888-418-4467 or email me at info@TheMortgageU.com.
What can I do if I have bad credit? - You may still qualify for a loan, despite credit problems you may have had in the past. In most cases you may qualify for a loan with late payment histories on your credit report, but the lender will want explanations.
You should utilize the free annual credit report and obtain a copy of your credit report at least once per year to check for errors and accuracy of the items being reported. By reviewing your credit each year you can insure you are in a better position to obtain financing for a home. There are many companies that specialize in credit repair that can help for a minimal fee to increase your credit scores also so that you can not only qualify for a home mortgage loan but for a home mortgage loan with a good rate. There are many options available for people with bad credit trying to obtain a home loan. Please call at 888-418-4467 or email at info@TheMortgageU.com to find out how much you qualify for based on your current credit.
In some cases a good letter of explanation (LOX) will be accepted by the lender. The letter should explain the circumstances that caused the late payments, foreclosure, etc. If you are borderline eligible for a loan then the LOX may be the fastest way to becoming approved.
Many "Subprime" or "Non Prime" banks grant mortgage loans to home buyers with bad credit. These types of "Sub Prime" mortgages usually carry higher interest rates than Conforming home loans, which are often sold to Fannie Mae and Fredie Mac. Many of the "Nonprime" loans are offered with a 2-year fixed rate followed by adjustable rates for the remaining 28 years. These types of bad credit home loans are designed to help poor credit home buyers purchase homes, rebuild or repair their credit profiles during the 2 years fixed rate period, and refinance into a Conforming mortgage with better interest rates and terms.
Refinance With Bad Credit and Behind on Mortgage - Current home owners who have bad credit and/or mortgage late payments that need to refinance still have many options available to them today. As a home owner with bad credit you can still refinance with mortgage late payments as much as 120 days late.
While refinancing with bad credit and/or being behind on your mortgage can be a tough task at times, you usually still have options available to you. Unlike a person who has great credit and hundreds and possibly even thousands of choices in mortgage lenders to choose from, a person with bad credit may only have a handful of options available to them. Some of the most common lenders that can handle refinances for people with bad credit and that are behind on their mortgages are called hard money lenders. Hard money lenders will usually charge somewhat higher rates than everything that is advertised, however they can be a viable option to help save your home and to help get you back on track with your finances.
If you are in this credit situation, you should consider getting into a short-term loan, which is typically lower in overall costs, but allows you ample time to rebuild your credit and assets, so that you can refinance into a more attractive rate and term, once your credit scores have increased.