Credit Home Financing - Buy A House Even With Poor Credit
By Carrie Reeder
Sub prime lenders come in two groups: reasonable
and unreasonable. Reasonable sub prime lenders offer mortgage financing
to high risk borrowers with slightly increased rates and fees. Unreasonable
sub prime lenders charge several extra points and excessively high fees.
Only through comparative shopping can you know if a particular lender
is offering reasonable or unreasonable rates.
Comparing rates is easy through online lender websites.
By entering basic information, you can quickly receive quotes from several
mortgage lenders. These quotes will give you a rough idea of who offers
the most competitive packages. Be sure to add in fees and extra points
when you are considering the cost of the loan.
Real mortgage quotes require more information than
just the loan amount and your income level. You will also need to provide
information about your home's location, your down payment, and other personal
After you have compared general quotes, you can
request specific quotes from a handful of mortgage lenders. Online mortgage
applications allow you to do this from the convenience of your home where
you can easily find your financial and personal records.
Once you have received a quote from a mortgage
lender, you can quickly finish the application process. Some lenders will
require additional information online, but most lenders will simply mail
out the final paperwork for your approval. After the forms are signed
and notarized, you send it back to the lender for final processing.
A subprime loan does not have to be permanent.
Mortgage lenders look at the last three years of your credit history when
considering your application. So after making regular payments on your
mortgage and all your other bills, you can consider refinancing for a
lower interest rate. Other ways to improve your credit rating include
paying off credit cards and increasing your cash reserves.
About the Author: Carrie Reeder is the owner of
an informational website about various types of loans. To view our list
of recommended sub prime mortgage lenders online, visit this page: http://www.abcloanguide.com/lessthanperfectcredit.shtml