California Bad Credit Mortgage Loans 3 Things To Avoid When Applying For Home Loan

California Bad Credit Mortgage Loans - 3 Things to​ Avoid When Applying For Home Loan
If applying for a​ mortgage loan with poor credit,​ there are steps you​ can take to​ help get a​ better rate .​
Granted,​ if​ your credit score is​ low,​ the​ likelihood of​ getting a​ prime rate is​ slim .​
Still,​ reasonable rate bad credit mortgage loans are available .​
As a​ homebuyer,​ you​ must be willing to​ research various lenders and compare different loan programs .​
Moreover,​ homebuyers should avoid maneuvers which could hurt their chances of​ approval.
Avoid Late Payments When Applying for a​ Mortgage
Even if​ your credit score is​ good,​ the​ occasional late payment is​ common .​
If planning on​ buying a​ home,​ it​ is​ important to​ establish a​ good payment history with creditors - before applying for a​ home loan .​
Mortgage lenders understand that situations occur which make it​ difficult to​ pay bills on​ time .​
However,​ if​ hoping to​ buy a​ home,​ it​ is​ important to​ begin creating good credit habits.
Many lenders approve mortgage loans to​ people with several late payments .​
Yet,​ these persons pay higher rates .​
To avoid an​ increase in​ mortgage rate,​ attempt to​ submit all credit card and loan payments on​ time .​
If possible,​ adopt new payment habits at​ least twelve to​ six months before applying for a​ home loan.
Limit the​ Number of​ Credit Inquiries
A common mistake made by some homebuyers is​ allowing several mortgage lenders to​ pull their credit .​
Shopping around for a​ home loan is​ smart .​
However,​ if​ comparing three or​ four individual lenders,​ do not consent to​ having your credit checked .​
Instead,​ request no-obligation quotes from lenders.
Quotes do not involve credit checks .​
However,​ buyers must provide an​ accurate credit description .​
To do so,​ it​ helps to​ obtain a​ copy of​ your personal report online,​ which does not count as​ a​ credit inquiry .​
Once the​ lenders remit a​ quote,​ compare the​ different offers and choose the​ loan with the​ best rates and terms .​
Next,​ complete a​ mortgage loan application .​
To finalize the​ loan approval,​ the​ chosen lender will pull your credit.
Avoid Opening New Credit Accounts
When applying for a​ mortgage loan,​ it​ is​ important to​ maintain a​ low debt to​ income ratio .​
Obtaining new credit lines and applying for a​ mortgage is​ a​ bad idea .​
For example,​ if​ you​ buy a​ car before your mortgage loan is​ finalized,​ this will increase your debt to​ income ratio .​
This could affect whether you​ still qualify for the​ approved loan amount .​
To avoid the​ hassle of​ having to​ re-qualify for a​ mortgage loan,​ postpone opening new credit accounts until the​ loan closes.