Sunday, February 7th, 2010 at
4:21 pm
Can you get bad credit mortgages? If you think that because you have bad credit you are out of luck when it comes to getting a mortgage, think again. There are plenty of bad credit mortgages that are available today at competitive rates.
Years ago, you had to have excellent credit and 50 percent down before you could hope to attain a mortgage. Today, however, you can get a bad credit mortgages with little or no money down if you know how to shop. And although you will most likely pay a higher interest rate than those who have excellent credit, you can still expect to find competitive rates when you shop for a mortgage.
Bad credit mortgages? Not an impossibility. What you do need to do is to go to a mortgage broker who will find you a good sub prime mortgage company that will underwrite your loan. Sub prime lenders only came into the picture over the past 20 years. Prior to that, you would have a difficult time getting a mortgage if you had either bad credit or no credit.
A sub prime mortgage will allow you to get a competitive mortgage rate at a sub prime mortgage underwriter. The fees associated with dealing with a sub prime mortgage company are a bit higher than those with a traditional bank, but the interest rates are not all that much higher. Also, you can negotiate the fees just as you can with any other lender. There are just as many sub prime lenders out there making mortgages as there are banks and other mortgage lenders. This means that you can take advantage of the competition and negotiate a good deal.
Just because you have bad credit is no reason to believe that you cannot afford to buy a home. You can get bad credit mortgages just about anywhere. The first thing you want to do is contact a mortgage broker and tell them about your bad credit. They will then know the vehicle that will work to get you in a loan. Even if you have a past bankruptcy, you can find a mortgage.
There has never been a better time than right now to buy a house. The housing prices are lower than ever and mortgage rates are very low, too. Even if you are looking for bad credit mortgages, you can get low and competitive mortgage rates. If you are putting 20 percent down on a house, you can go “no doc” which means that you do not have to provide employment verification or income tax information to get approved for the loan. You will only need to fill out an application and get an appraisal of the property.
If you have been longing to buy a home in the current buyer’s market, but have been held back because you feel that you will not be approved because of your bad credit, think again. Bad credit mortgages make it easy for anyone to be able to get a mortgage on a home, even those whose credit is very poor.
By: Remy
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Tuesday, February 2nd, 2010 at
6:28 pm
Mortgage companies are sometimes reluctant to award a home loan to those with bad credit. There are however, mortgage lenders who specifically work with someone who has bad credit. A bad credit mortgage can also be known as a poor credit mortgage, adverse credit mortgage, sub-prime mortgage and a non-conforming mortgage.
A bad credit mortgage is different in many ways from a traditional mortgage. Getting approved for bad credit mortgage loan will most often mean that you will be paying higher interest rates, higher closing cost fees, and a larger down payment. These things are why it is very important to shop around and do your research to make sure you are getting the best rates that are possible for your situation. There are many mortgage lenders that are willing to provide mortgage loans to those with bad credit. There are also many lenders who will still provide a mortgage loan with low interest rates depending on how bad your credit is.
Mortgage lenders who lend to those with bad credit most often love to get those who have not researched the market to find what is offered and find the best deal. If you do not shop around and do your research, you most often will be taken advantage of and not receive the best possible deal. Because of your bad credit rating and income status you may find that it will be best to allow a broker to work to find your best loan. If so, use much caution and please make double sure that the broker can be trusted. Using a broker can make you very vulnerable to increased charges, fees and interest rates.
Some of the mortgage lenders who help those with bad credit will attach a pre-payment penalty to the contract. This would mean that you would have to keep the loan at least for the pre-payment penalty length of time. For example, if your loan had a pre-payment penalty of 1 year, you would have to pay the high interest rates for at least 1 year before paying off the loan. Always research and find the loans with the shortest pre-payment terms or no pre-payment terms so you can work toward paying off the loan quicker without paying a penalty.
You will need to decide whether or not you want an interest only payment or a payment that consists of both interest and principal amounts. An interest only payment is usually a lower payment and works better for those on a tighter budget. Paying an interest only payment will not decrease the loan amount and most often will increase the balance because you are not paying any on the principle.
Most people choose the payment that includes both the principle and the interest. This type payment helps to decrease the amount you owe because part of the payment is being applied to the principle amount and not just the interest. The payments may be a little more, but may be more flexible than interest only payments and allows you to decrease your debt at the same time.
You will also need to decide on what type of interest you will want to pay. There is a variable interest rate and a fixed interest rate. With variable interest rates, your monthly payment will increase or decrease based on what the national interest rates are at the time of your payment. A fixed interest rate means that your interest rate never changes; therefore your payments would remain the same from month to month throughout the term of your mortgage loan.
When getting ready to apply for a mortgage loan, there are some things that you will need to have on hand. You most likely will need the last couple of your paycheck stubs, your W-2 and last year’s tax returns. The lender will also want to know about your assets. Make a list of your checking and savings account balances, stocks, life insurance policies, real estate, vehicles and any other item that would be considered an asset. It is also very important to know what your credit looks like before allowing the lender to pull the information. Therefore, if there is an error on your report, you can address it and get it corrected ahead of time.
Mortgage lenders look at several things when you apply for a mortgage loan. They will view your credit history, employment history, your income and how much debt you currently have. The amount of cash that you have on hand is also very important. If you have enough cash on hand to pay a large down payment, the lender may consider you less of a risk because you will have more invested in the property and will be less likely to default on the loan.
The most important thing to do when trying to find the best mortgage loan for your needs, is to make sure that you will be able to make the payments and make them on time. Doing so will improve your credit over time!
For More Information on this and other Credit Issues, please go to www.Bad-Credit-Options.com
By: Teresa Davis
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Sunday, November 8th, 2009 at
2:04 am
A bank or a mortgage company, which offers home loans can be referred to as a ‘mortgage lender’. There are various categories of primary mortgage lenders. Here, three major categories are described in detail.
• Mortgage Banker:
A lending organization or an individual that either services mortgage loans or originate loans can be referred to as a ‘mortgage banker’.
The role of a mortgage banker is to sell mortgages to the second mortgage market soon after funding. The mortgage banker can, however, continue to service the loan. In this case, the mortgage sale would not terminate the relationship between the lender and the borrower.
A mortgage banker helps the borrowers to select the type of mortgage that will suit their financial objective.
• Portfolio Lender:
An organization is called a ‘portfolio lender’ when it uses its own funds to provide loans, and maintains a record of the loan in the organization’s books.
It does not sell mortgages to the second mortgage market. Instead, it keeps most of the mortgages for the purpose of an investment portfolio.
Such an organization is not bound by the Freddie Mac or Fannie Mae guidelines.
The portfolio loan can be sold in the second mortgage market only when it is ‘seasoned’. A portfolio loan becomes seasoned when it reaches the one-year mark without any late payments. In such a case, the portfolio lender becomes a mortgage banker who continues to service the loan.
• Direct Lender:
An individual or an organization that gets the funds for the loans from other lending organizations but makes loans in its own name is termed as a ‘direct lender’. He can either be a portfolio lender or a mortgage banker.
Other categories of primary mortgage lenders include a correspondent lender, a mortgage broker, wholesale lender, online mortgage lender, and a sub-prime mortgage lender. These are described in other related articles.
By: Eshwarya Patel
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