Mortgage brokers have the ability to locate the perfect home loan for
your credit type. Before lenders began offering a range of home loans,
getting approved for a mortgage loan with poor credit was impossible.
Today, there are many loans and lenders that focus on both good and bad
credit mortgage loans.
Options Available to Homebuyers with Good Credit
Naturally, having a high credit score will present better mortgage loan
options. For starters, if your credit score is above 680, you are
considered a prime borrower. This status allows you to apply with any
mortgage company and receive the best rates.
Furthermore, those with good credit may qualify for zero money down
home loans up to 107%. This financing option is perfect for homebuyers who
seek assistance with down payment and closing costs. Moreover, real
estate investors may take advantage of 107% financing in order to have
enough funds to make improvements to the property.
Individuals with good credit may also qualify for a no documentation
loan or a stated income loan. Both options are ideal for the
self-employed or income that’s difficult to verify.
Poor Credit Loan Option
If you have poor credit, your loan options for a mortgage are also
great. Lenders realize that excellent credit is hard to maintain. Bad
credit happens for many reasons, and can affect good people. For example,
loss of employment or serious illness may create a financial burden. In
this instance, it becomes difficult to maintain regular payments.
The majority of mortgage lenders and brokers believe in second chances,
thus they offer several loan programs that cater to low credit scores.
This include 100% financing loans, no money down home loans, VA homes
loans, low income home loans, etc.
How to Apply for a Mortgage Loan
If new to the home buying process, mortgage lenders and brokers will
assist you with the application. Before completing and submitting a
mortgage application for approval, request multiple quotes from different
lenders. If using a broker, multiple offers are automatic.
Try using one of ABC Loan Guide's
Recommended California Mortgage Lenders.
There are several benefits to obtaining several mortgage quotes.
Lenders offer different rates and terms. By acquiring several offers, you can
compare varying loan packages and select the finance option with the
lowest mortgage rate.
View our recommended lenders for a California Mortgage loan online. Also, view our recommended lenders for a Poor Credit Home Loan.
