Sub Prime Mortgage Loans Qualifying For A Mortgage With A Foreclosure
Or Bankruptcy

Sub Prime Mortgage Loans Qualifying For A Mortgage With A Foreclosure Or Bankruptcy



Sub-Prime Mortgage Loans – Qualifying For a​ Mortgage With a​ Foreclosure Or Bankruptcy
Qualifying for a​ sub-prime mortgage loan with a​ foreclosure or​ bankruptcy in​ your credit past is​ just a​ matter of​ finding the​ right lender .​
As long as​ you​ have a​ regular source of​ income,​ you​ can qualify for a​ mortgage .​
The real issue is​ about qualifying for low rates .​
But there are ways to​ improve your mortgage application.
Ways to​ Help Your Mortgage Application
A foreclosure or​ bankruptcy primarily affects your credit for the​ first two years after a​ discharge .​
While they will remain on​ your record for seven to​ ten years,​ they will cease to​ have a​ significant impact on​ your ability to​ qualify for now rates .​
Instead lenders look at​ your most recent payment habits and debt ratio.
Besides waiting for your credit score to​ improve,​ you​ can make your mortgage qualifications look more favorable by increasing your down payment .​
By building equity into the​ property,​ lenders reduce your risk score and rates .​
Remember too that you​ can access this equity at​ any time with a​ home equity loan or​ line of​ credit.
Other ways to​ improve your qualifications are to​ pay off debt,​ liquidate investments so you​ have cash reserves,​ and close unused credit accounts.
Your Lender Makes a​ Difference
While you​ can improve your home loan application,​ one important way to​ reduce your loan costs is​ to​ find a​ competitive lender .​
With rates varying a​ point or​ more between sub-prime lenders,​ time spent researching loan quotes will save you​ money.
Nearly every lender deals with some kind of​ sub-prime loans,​ so include traditional lenders in​ your search .​
To use your time most efficiently,​ ask for loan quotes on​ the​ particular loan amount and terms you​ want .​
With these relevant numbers,​ you​ can determine which company has the​ lowest costing loan for your particular situation.
Sub-prime loan rates are usually 1-2% higher for every fifty points below 650 .​
It’s important though to​ also look at​ closing costs when comparing sub-prime financing .​
Often a​ good looking rate can be a​ more expensive loan because of​ high upfront fees .​
Protect yourself by carefully reading the​ details of​ each loan quote you​ receive.




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