Bad
Credit Home Loans - Dealing With Bad Credit Mortgage Companies Online
By Carrie Reeder
Dealing with mortgage companies online can enable
you to get a home loan even with bad credit. Bank associates'skepticism
and talk around are avoided when you apply online with a mortgage broker.
You also can compare multiple financing offers to ensure you are not getting
scammed just because you have poor credit.
To get the most out of your online mortgage company,
follow these tips:
1. Learn About The Loan Process
Don't be a victim to predatory lenders. Educate
yourself about the loan process by reading articles on mortgage brokers
websites. You will quickly find out what fees and interest rates you can
expect to pay for a sub prime loan, as well as the type of financing that
will best meet your needs.
2. Apply For Quotes
There are two types of mortgage quotes that you
can find online. One is a generic estimate based on limited information
such as your estimated income and monthly bills. This is similar to the
quotes posted at the front of a bank. They are a fast way to compare mortgage
lenders, but not a quote you can rely on.
To get a real quote, you will need to fill out
detailed information since there are so many factors besides income that
determines your mortgage rate. If you have a FICO score of less than 600,
you will be required to put down at least 5%. Here's a hint - to qualify
for a lower rate, increase your down payment amount.
3. Compare The True Loan Cost
Looking at interest rates shouldn't be the only
way you compare costs. Closing fees, loan application fees, or fees by
any other name can add thousands to your loan. To determine the cost of
your loan add the amortization and loan fees. Many mortgage lending websites
offer an amortization calculator to make this easy.
4. Follow Up On Your Loan Application
Once you have picked a lender, you can finish the
mortgage process by applying online. Don't forget about the application
though, keep all records from the mortgage lender and make weekly phone
calls to ensure the money is processed on time.
5. Plan To Refinance
After you have completed your mortgage loan, plan
to refinance after three years when you have established good credit.
Make it a habit to make regular payments and reduce your short-term debt
to maximize your credit rating for lower interest rates in the future.
About the Author: Carrie Reeder is the owner of
http://www.abcloanguide.com,
an informational website about various types of loans. To view our list
of our most recommended bad credit mortgage lenders online, visit this
page: http://www.abcloanguide.com/lessthanperfectcredit.shtml
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