Bad Credit Home Financing

Sub prime lenders are of 2 types: reasonable and unreasonable. Reasonable sub prime lenders provide mortgage financing to high-risk borrowers with slightly higher rates and fees. Unreasonable sub prime lenders charge many additional points and exorbitant fees. But by shopping around, you can decide if a certain lender is charging reasonable or unreasonable rates.

Evaluate Rates
Evaluating rates is simple through online lender websites. By keying in basic information, you can immediately get quotes from various mortgage lenders. These quotes will give an approximate idea of the lender offering the most competitive packages. Be sure to factor in fees and additional points when calculating the cost of the loan.

Actual Quotes
Actual mortgage quotes need more information than simply the amount you wish to borrow and your earnings. You also have to give details regarding your home’s location, your down payment, and other personal details. After you have compared general quotes, you can ask for specific quotes from selected number of mortgage lenders. Online mortgage applications let you carry out the task from the convenience of your home as you can easily access your financial and personal details.

Online Application
Once you get a quote from a mortgage lender, you can quickly complete the application process. Some lenders will ask for extra information online, but most lenders will just mail the final paperwork for you to approve. You have to sign and notarize all the forms, before returning them to the lender for final processing.

Refinance Later
A sub prime loan need not be permanent. Mortgage lenders consider the last 3 years of your credit history when going over your application. So after making regular payments on your mortgage and other bills, you can think about refinancing at a lower interest rate. Other methods of improving your credit rating consist of repaying credit card dues and enhancing your cash reserves.