Thursday, May 31, 2012

Poor Credit Mortgage Loan


Do you have poor credit and find it difficult to get approved for a mortgage loan? It is everyone's dream to have a place to call home. When you have bad credit it can severely hurt your chances of fulfilling this dream. Fortunately, there are some things you can do to get approved for a poor credit mortgage loan.

The first thing you should do if you feel you have a bad credit rating is look up your credit score. You can do this online be doing a quick search and learn your credit score within minutes. Once you know your credit score the next thing to do is to check your report for any inaccuracies or errors. If you do find any discrepancies in your report you should call the credit reporting agency.

After getting your credit score the next thing you should do is focus on improving your credit score. Start by paying off any outstanding debt like credit cards and other short term loans. This will help reduce your debt to income ratio, thus improving your credit score. Another thing you could focus on doing is consolidating your debt. Debt consolidation means putting all of your existing debt in a single monthly payment. This would lower the interest rates you would be paying per month, which would lead to monthly savings.

Another important step you can take to get a bad credit home mortgage loan approved is start saving. By saving up 5-10% for a down payment, lenders are more willing to give you a loan. This is because by having a down payment you reduce the risk that lenders bear. You are also more likely to be given a lower interest rate if you do have a down payment for the loan.

The last thing you should do before you apply for poor credit home mortgages is to ensure that you do the research. Start online and find different lenders who are can offer different bad credit home loans. Make sure you try different lends and don't go with the first one that accepts your loan. You may be able to save a few percentage interest points if you look around.





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