Mortgage Companies Prime Lenders Vs Sub Prime Lenders

Mortgage Companies Prime Lenders Vs Sub Prime Lenders



Mortgage Companies - Prime Lenders Vs Sub Prime Lenders
For the​ best rates and fees,​ look to​ a​ prime lender to​ give you​ top financing due to​ your excellent credit score .​
For those with poor credit,​ turn to​ a​ sub prime lender for reasonable rates on​ mortgage loans .​
You will also find more flexibility with a​ sub prime in​ drawing up terms and conditions in​ your loan contract.
When Prime Lenders Are Best
If you​ have an​ excellent credit score and a​ solid financial base,​ look to​ a​ prime lender to​ get you​ the​ market rates and fees .​
With near perfect payment history and cash assets,​ you​ can bank on​ getting superb rates.
To get even lower rates,​ do some comparison shopping online .​
Working with a​ mortgage broker can save you​ time in​ your search .​
You can also negotiate further rate reductions by paying points at​ closing.
But if​ you​ are looking at​ a​ down payment of​ 20% or​ less,​ you​ will need to​ carry private mortgage insurance .​
Annual premiums cost around a​ thousand or​ more .​
Once your assessed equity value equals 20%,​ you​ can then drop the​ insurance.
Special Cases For Sub Prime Lenders
Sub prime lenders handle financing for special cases,​ whether that is​ bad credit or​ unique terms .​
For accepting mortgage applications with higher risk levels,​ sub prime companies charge slightly higher rates.
Of course there are shady lenders who charge excessively high rates and fees .​
But you​ can avoid these companies by researching several lenders to​ find a​ good deal on​ a​ home loan.
Sub prime lenders don’t require private mortgage insurance or​ a​ stellar credit past .​
Nearly everyone can qualify for financing; it’s just a​ matter of​ what rates and fees you​ are willing to​ pay.
Where to​ Find Your Lender
Nearly all lenders handle quotes and applications online .​
If you​ are unsure about which type of​ lender to​ turn to,​ take a​ look at​ your credit report .​
If you​ are still undecided,​ ask for loan estimates from both types of​ lenders.
Even within each type of​ lender,​ there is​ a​ lot of​ variation in​ loan costs based on​ the​ terms you​ select .​
So consider all your loan options when comparing rates and fees.




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