Guest Post by Idania silvia
When people are not being able to afford to buy a new house, mortgage is the answer. But people with bad credit score often wonder whether they can qualify for a loan. This is because lenders always check the financial status of the borrowers or their payment history, before lending them money. However, in reality, things got changed.
Bad credit score is no more an obstacle in life. It may be little difficult to obtain a mortgage loan with bad credit score, but not absolutely impossible. There are a lot of options for a bad credit mortgage loan. You simply need to take a look at them.
So let us take a close look at some important ways to obtain a mortgage loan with poor credit score.
- People who want to obtain a mortgage loan with bad credit have to meet certain eligibility criteria. They have to have a stable source of income and some liquid assets in order to determine a history of change. Without some guarantee, lenders do not likely accept the loan application and do not lend money to the borrowers.
- You may seek help from a loan broker who collect quotes from several different banks to help you choose the best loan for you. Taking help from a loan broker is a good option since banks know they are competing for your business with other banks. This makes them offer best quotes as possible. However, be careful while hiring the services of a loan broker. Make sure the one you consider is reputable and does not charge exorbitant fees. Now days, the best resource to find out a loan broker is Internet.
- When you obtain a mortgage with bad credit, you typically have to pay 3 percent of the total loan upfront. If you pay 10 percent or more as a down payment, you will more likely qualify for the loan. However, paying upfront fees can be beneficial to purchase points. More the points you will have, lower the interest rate you will get.
- Another way of obtaining a mortgage loan with bad credit is to get a cosigner who has fair credit score. Not all lenders allow cosigners on mortgages, but some do. A cosigner is the person who agrees to take the responsibility of paying back the loan in case the primary person defaults on payment. However, the reason why most of the banks do not allow a cosigner is that once you are well into term, cosigners look for a way out leaving the bank and the borrower into trouble.
In conclusion, if you want to acquire a mortgage loan with bad credit score, bear the aforementioned ways in mind.
This guest article has been written by Idania silvia