Home Loans for People with Bad Credit - Using a Sub Prime Mortgage Lender

While traditional mortgage lenders may disqualify you for a mortgage, obtaining a home loan with bad credit is doable. Various lenders are in the business of lending money to people with a few credit blemishes. These may include late payments, missed payments, bankruptcy, foreclosure, etc. Sub prime mortgage lenders offer loans to individuals who do not qualify with a bank or mortgage company. You can expect to pay a higher interest rate. On the other hand, once your credit rating improves, you can refinance your mortgage loan after the prepayment penalty period and receive a lower rate.

The majority of banks and traditional mortgage lenders are unwilling to grant a loan to individuals with bad credit. The likelihood of a bad credit applicant refusing, or being unable to repay the loan is high. Sub prime mortgage lenders are prepared to take a risk. These lenders charge higher fees. This allows the lender to make a profit even if the property forecloses. The interest rate offered by sub prime lenders vary. Thus, you should compare rates and services of at least three different lenders.

Applying for a mortgage loan with a sub prime lender is quick and easy online. There are several advantages to submitting an online request. For starters, you do not have to contact several lenders to receive a quote. A single online application will offer you multiple quotes from various sub prime lenders willing to negotiate a deal. After submitting a request for information, lenders will review your credit report and remit several quotes. Your responsibility involves comparing estimated interest rates and fees. Once you have selected the lender with the best offer, submit a request for an official quote, or estimate. Within a few days to a week, the lender will mail the paperwork for you to sign, which closes the deal. Before signing loan documents, carefully review all information. If the sub prime mortgage lender is local, you may come into the office to sign documents.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

See Also:

Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK
Add the term online and it will open for you an exhaustive assortment of opportunities. Add online to mortgage and it will have the same effect. So many people want to get mortgage programme and get with it fast. The online mortgage in UK indisputably takes lesser time and simplifies the entire ... more...

Mortgage Glossary - A Glossary of Mortgage Terms You Should Know
Acceleration Clause A clause in a mortgage defining that the entire outstanding balance can become due and payable should mortgage default occur. If the entire balance is not paid, the property will be foreclosed.Adjustable Rate Mortgage (ARM) Mortgage with interest rates that may be adjusted by ... more...

Lowest Mortgage Rates UK Lowering the Cost of Mortgage
Mortgage is the most widespread industry that offered to loan borrowers with real estate as collateral. Mortgage has so many innovations and opportunities that a loan borrower can exploit them for their own benefit. You must have heard and read it elsewhere that mortgage rates are at an all time ... more...

Types of Loans
Loan Types What types of loans are available to me? There are many different types of mortgage offered to consumers. Some of the most popular mortgage broker are the FHA Home Loan (Federal Housing Administration) and the VA Loan . Because the FHA mortgage and VA mortgage are guaranteed by the ... more...