Mortgages For Bad Credit [mortgagerates-tips.blogspot.com]

8:34 PM  Unknown  

Mortgages For Bad Credit [mortgagerates-tips.blogspot.com]

That's right, mortgage programs are still around in today's times to help people with less than perfect credit buy or refinance their current mortgage. What are the programs you might ask? As we all remember a few years ago sub prime mortgages were the popular item. You could get a $ 400,000 home loan with a 580 credit score without having to prove your income. Sounds crazy right? Well it happened all day long and people got in way over their heads and sure enough, times are tough today because of it. Loan like this have disappeared and thank goodness they have!

The loan programs that are still available to help people with less than perfect credit are as follows;

FHA Loans
FHA SECURED Loans
VA Loans

What To Expect

Even though there are loan programs that help people with bad credit, there are still guidelines and qualifications.

Don't go to the bank and tell them you want an FHA loan expecting them to just automatically approve you. Do your homework. If you are seriously in the frame of mind and time of life to buy a home, do it the smart way. Here are a list of things you can expect while looking at loan programs and homes.

Understand that if you go to 5 different mortgage loan originators your credit will be pulled 5 separate times. Each pull of your credit lowers your score 5-10 points. Too many people make the mistake of going to 5 banks and having them all see what they can do for them. DON'T do this. Get one bank to take a look at you, get a copy of the credit report and know where you stand BEFORE selecting the company to do your loan.

Bad Credit Mortgages are available but require you to have a minimum of a 620 mid credit score.

If you don't have a 620 score, don't have a bank pull your credit. Instead follow our free credit repair techniques. Make sure you get qualified for a loan BEFORE looking for houses. A lot of people end up finding the perfect home, signing a contract, and then have the disappointing news that they didn't approve for the loan and have to end up canceling everything. Do yourself a favor, don't set yourself up for failure.

Once you know you are qualified, call several banks and ask them what their rates are on an approved FHA loan. This will save you from giving them all your info to protect you from additional credit pulls. This technique will ensure that you get the best rate available and save you the most money in the long run.

More Mortgages For Bad Credit Issues

Question by Arrika S: Does anyone know of anywhere in western PA that deals with bad credit mortgages? Our credit score is around 550. I talked to a place that will help if our score goes up to 580. But, I'm looking for a mortgage now. Best answer for Does anyone know of anywhere in western PA that deals with bad credit mortgages?:

Answer by loanmasterone
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book. Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one. He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate. The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase. When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started. #1 One month of pay stubs for each person that will be on the mortgage. #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment. #3 Two years of federal income tax along with the W-2 that match. Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased. Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral. Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments. If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan. You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once. Make sure your mortgage broker explain all your options so you may make an intelligent decision. What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else. So select the best option for you and your financial situation. You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment. Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value. The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed. After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home. Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you. I hope this has been of some use to you, good luck "FIGHT ON"

[mortgages for bad credit]

Posted in: