POOR CREDIT HOME LOANS

Poor credit home loans

Poor credit home loans are also known as sub-prime mortgages, because they are given out on less than favorable lending terms. The bank is taking a larger risk than they would be with a regular mortgage, since there is a higher chance that the borrower will default than someone with good credit. The rates on this loan are also higher than those on a standard mortgage, so this gives the lender motivation to give the loan. The loan can be refinanced in two years if the borrower makes all payments promptly during that time. Some of the lending banks will not actually do a credit check on you, since they already know that you're applying for a poor credit loan. It is also important to know that this loan will almost always be at an adjustable rate, so payments may vary from month to month.

Since poor credit home loans are a last resort for most people, it would probably be worth your while to at least attempt to get a regular loan first. Many people simply assume that their credit will not qualify them for a standard loan, and find themselves paying the higher rates of a poor credit loan. Companies that advertise poor credit loans often make people believe that a poor credit loan is the best they'll be able to get, and then give them the loan at the higher rate.

Contact or apply to many different lenders or brokers - Online you can fill out many mortgage applications where the lender or mortgage service company does not pull your credit history. If they don't ask for your social security number, they usually cannot pull your credit. Brokers usually use the initial application or inquiry form and what you tell them about your credit to make a decision about whether they should pursue the application and pull your credit or not. Many lenders will tell you that you are not going to get approved anywhere and that if they can't help you, no one can. That is not true. All mortgage brokers have access to very different mortgage programs and some brokers are more creative in their financing techniques than others.

Fill out your application or inquiry as accurately as possible - Inflating your income on your application or inquiry form, to be higher than you know you can verify your income to be, will only delay the process of getting pre-approved. The broker will work the fastest for you if he/she is working with the exact information he/she needs to be able to verify. That's the best way to get approved and through the pre-approval process smoothly.

Be persistent - This is the key when seeking a mortgage loan pre-approval with poor credit, be optimistic. Look for creative ways to get financing and contact as many brokers as possible. There is one or more out there that can help you. The key is to find them.

If you are considering a poor credit home loans that offers a variable interest rate, you need to learn more about this.

If you do your homework, though, the poor credit home loans may not be so bad at all for your needs. But, if you're creative and have a little patience, a poor credit home loans can help you purchase the home of your dreams.