Bad Credit Mortgage Loans Tips
Here is the Bad Credit Mortgage Loans tips.
The things that lenders hate to see on credit reports:
- Late payment, no matter how long you owned a house,lenders are hate to see the payments late. Let said, if you wish to refinance or buy a new house. But you have late payment from the past 12 months, you have to wait another 12 months from the month you late.
- Bankruptcy, if you are bankrupt within 4 years, possibility of getting loan is extremely low. If after 4 years, you will able to get the prime lending rates as usual peoples.
- Back owed child support, before looking a home, you must make sure you are not owing any child support.
- Taxed LIENS & Judgements, is means that you default on the home mortgage and the house is sold. The Tax LIENS & Judgements will pay-off 1st, whatever left will be pay to the lender.
- Foreclosures, lenders are ok with foreclosures, if they are more than 4 years, they will look into it and approving another loan for you.
Things need to be aware for bad creditor, who apply a loan
1) There are certain lenders have lending to a bad credit mortgage loans to borrowers, find them out and discuss your scenario with them. Make sure you are employed & have adequate income to repay the loan.
2) The interest rate for these loans is higher than others, so put a highest down payment that you can afford.
3) Now, you have to focus on how to improve your credit score. If you successful raise up your credit score, lenders will able to offer a better rate to you. Study all terms & conditions of the contract before you sign or you may get a lawyer to advice you.
How to Fix the Bad Credit
1) First , you must obtain your credit report. You need a tri-merge report which shows you your 3 credit scores. You may get it online or from bank. If you wish to get it online, there is some websites called freecreditreport.com
2) Next steps, you have to circle the late payments, judgement and tax liens on credit report. By these step will help you target the problem areas and know what actually needs to be fixed.
3) Last steps is writing a credit repair letter directly to the credit bureaus. Disputing some of the items on credit report. This will take approximately 15-30 days to get a response from them, inform you that anything got deleted or remained on the credit report. This action will help to raising your credit score about 30 to 90 points.
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