The process for buying a house with poor credit is very similar for
those with prime credit ratings. The requirements are the same – have a
steady source of income and willingness to research to find the best
lender. With a little bit of time on your part, you can get a rock bottom
mortgage rate even with bad credit.
Basic Requirements For A Mortgage Loan
Lenders are primarily concerned on whether you can repay your mortgage
or not. They only make money if you make your payments. So they look at
your income, cash assets, credit history, and a few other factors when
determining your loan rates.
Poor credit doesn’t prevent you from getting credit, just the very
lowest rates. However, other factors can help you secure lower rates. For
instance, your income dictates the maximum amount you can borrow, along
with your rates. Having cash assets for more than three months’ living
expenses also helps you qualify for low rates.
Besides having a regular source of income, there really aren’t any
hurdles for you to get a home loan. Even subprime lenders offer zero down
mortgages for those with adverse credit.
Invest Time For Better Rates
While cash assets and a large down payment will reduce your mortgage
rates, finding the right lender will do more to save you money. When you
take time to research a number of different financing companies, you
can be sure you have found the best deal.
No one lender offers the best rates on every type of loan. That’s why
it is important to ask for loan estimates based on your ideal loan. When
you use the same set of numbers for loan quotes, you will get reliable
figures to determine your mortgage choice.
Closing costs potentially can add thousands to the cost of a loan. So
use the APR to find the lowest costing loan. The APR includes both the
interest rate and fees.
Poor credit doesn’t have to prevent you from owning a home. There are
lenders out there willing to offer you reasonable rates on a mortgage so
you can fulfill your dream of buying a house.
Carrie Reeder is the owner of http://www.abcloanguide.com. View her recommended sources for a bad credit mortgage loan.
View her recommended lenders for a poor credit home loan online. Also, check out her recommended online companies to help you with managing debt.
