Credit Home Loan - Apply Online And Keep Your Credit Score As High As
By Carrie Reeder
If you have a poor or bad credit history with something
in your past like a bankruptcy or a foreclosure, you know how difficult
it can be when you try to get financing for a home mortgage purchase,
refinance, home equity or second mortgage loan. Its important to be persistant
in looking because there are home mortgage loans out there for people
with bad credit.
There are many articles online that will tell you to be
wary of subprime lenders, those lenders who specialize in doing hard to
approve loans. There are many things to be careful of with subprime lenders,
who can charge interest rates that are far too high and have unreasonable
pre-payment penalties. However, if you shop around and talk to many different
mortgage brokers, you should be able to find a lender that can get you
approved and with an interest rate and terms that are fair.
The best way to make sure you are getting the lowest interest
rate and terms possible, if you are looking to get approved for a mortgage
loan after a bankruptcy or foreclosure, is to apply with as many different
lenders as you can. You will want to compare as many mortgage loan quotes
as possible to make sure you are choosing the best one.
When you have a low credit score and are applying with
sub prime lenders, the main thing you need to be careful of is to make
sure that your credit report is not pulled until you have pretty much
decided which lender you are going to want to work with.
Every time your credit is pulled by a mortgage lender,
your credit score will drop just a tiny bit. That is why you need to be
careful. Sometimes even as little as a 5 point drop in your credit score
can be the difference between getting approved or turned down for a mortgage
loan. Most mortgage lenders, especially those that specialize in hard-to-approve
home loans need a credit score of 585 - 600 or higher in order to do 100%
financing with no money down on your home loan. The bottom line is, you
will need that score to be as high as possible.
Most lending institutions will not want to pull your credit
report initially, until they are sure you are serious about getting approved.
It costs the lender money to pull your credit, so it is in their best
interest to wait until they know you are serious before they pull your
credit report. So, make sure when you apply for a mortgage loan, that
your credit is not being pulled with your initial application. When applying
for a mortgage loan online, here are some ways to know that your credit
is most likely not being pulled.
1. Did they ask you to describe your credit? If they asked
you to describe your credit, that is because they are probably not going
to pull your credit initially.
2. Did they ask for your social security number? If they
don't have your social security number, they can't pull your credit.
3. Search their website to see if they tell you whether
or not they will pull your credit report initially. It may be listed under
their frequently asked questions.
the Author: To see a list of recommended bad credit mortgage loan companies
online, visit this page: www.abcloanguide.com/lessthanperfectcredit.shtml.
Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan
website, with informative articles and the latest finance news.