Credit Problems, What You Can Do
Having
a blemish on your credit
report can lead people to believe that it will be impossible for them
to obtain a mortgage
or refinance
their current one.
Although
having less
than perfect credit can be a challenge, all hope is not lost.
There
are lenders out there, and many of them, who specialize in doing mortgages
for people with challenged
credit. These lenders are known as sub
prime lenders.
You
may not be familiar with sub prime lenders because they are not the type
of institution to set up shop on every street corner like the banks.
Sub
prime lenders deal with all kinds of special and unique situations. Whatever
your situation may be, there is a good chance that there is a lender out
there with a program
for you.
For
instance, sub prime lenders have programs for people with poor payment
history, people who have had bankruptcies,
people who are in foreclosure
and are looking to be bought out, etc. Over all if your credit
history is poor, you will most likely have to go with a sub prime
lender.
My
suggestion to you would be to find a broker
to shop around for the best possible program for you.
A
broker is not a lender, their job is to guide and educate you through
the loan process. Most brokers have a contact list too literally hundreds
of lenders across the country including sub prime lenders. Allow for the
broker to assess your financial situation, than fit you into a program
that you both can agree on.
The
down side to dealing with a sub prime lender is the interest
rate. You can count on it being high. If you have bad
credit, the lender will see you as a risk, and the penalty you pay
for being considered a risk is in the interest rate.
The
point is this, regardless of your credit
issues, there most likely is a lender out there who will deal with
you, just make sure the deal you agree on is in your best interest and
not in the best interest of the broker or the lender.
When
deciding to purchase
a home or refinance
your existing one, always do your homework. Continue to educate yourself
so you know what to expect going forward, and don’t be afraid to
shop around for the best deal out there. Just because your credit isn’t
the greatest doesn’t mean lenders won’t be competing for your
business because they will.
Your
credit can be repaired
over time if you pay your bills on time, so make this a goal and work
toward it.
Credit
Report
Equal
Credit Act
Debt
Consolidation
Buying
House with bad credit
Refinancing
house with bad credit
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