One in four Americans today has a poor credit rating. In times past these individuals would be unable to secure a mortgage; however, there are many mortgage options available today for homebuyers with poor credit. Here are the basics of Sub Prime mortgage lenders and securing a bad credit mortgage loan.
Bad credit or “Sub Prime” mortgage lenders specialize in mortgage loans for homebuyers with poor credit ratings. If you have a history of late payments, liens, judgments, or have a bankruptcy in your past, a Sub Prime mortgage lender could help you purchase a home. Bad credit mortgage lending has grown from a small cottage industry to a significant part of the mortgage economy.
Your credit score will determine the interest rate you qualify. If traditional mortgage loans are not an option for you because of your credit, you can expect to pay more in finance charges including higher rates and lender fees. You can improve the interest rate that you will qualify for by taking the time to clean up your credit reports.
Mortgage lenders use your credit score to determine how much of a financial risk you are. The lower your credit score, the higher the risk. There are a number of factors in your credit files that determine your credit score. If you have negative or inaccurate information in your credit history, your credit score will suffer. The fist thing you should do prior to shopping for a mortgage loan is request copies of your credit records from each of the major credit agencies. Once you have these records, carefully scrutinize them for errors and if you find any you will need to dispute them with each credit agency.
You can learn more about cleaning up your credit and qualifying for the best Sub Prime mortgage by registering for a free mortgage guidebook.
To get your free mortgage guidebook visit RefiAdvisor.com using the link below.
Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.
Claim your free guidebook today at: http://www.refiadvisor.com
