If you are an individual with poor credit you might think a mortgage is just out of your reach. There are many mortgage lenders today that specialize in writing bad credit mortgages making it much easier for people with poor credit to qualify. Here is what you need to know before shopping for a bad credit mortgage loan.

As little as ten years ago if you had bad credit it was nearly impossible to qualify for a mortgage. Since this time an entire industry has sprung up around poor credit mortgage lending; there are now lenders that specialize solely in writing bad credit mortgages. it is important to understand that because you have a poor credit rating you represent a much higher risk for lending. Because of this risk you will pay more for almost every aspect of your mortgage. It is important to shop around for the best bad credit mortgage to minimize these additional expenses.

One important aspect of this bad credit mortgage is that you must find a lender that does not include a prepayment penalty in the loan contact. A prepayment penalty is a fee the lender charges if the loan is refinanced or you sell your home before the penalty expires. Prepayment penalties can be quite expensive; many mortgage lenders charge as much as six months worth of interest on 85 percent of the original mortgage loan balance.

Your goal for this mortgage should be rebuilding your credit. After two to three years of on-time payments you will want to refinance the mortgage with a traditional mortgage lender. You do not want a prepayment penalty preventing you from refinancing this mortgage. To learn more about your options for securing a mortgage with poor credit and how to avoid common mistakes, register for a free mortgage guidebook using the links below.

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

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