There are a number of mortgage lenders that will work with people who have bad credit. When it comes to obtaining a low mortgage rate, the information on your credit report will play a pivotal role in the interest rates you are given. In most cases, those with less than desirable credit will be given mortgages that have much higher interest rates than applicants who have good credit. In addition to this, most lenders will provide more favorable terms to those that have good credit. To get an excellent interest rate on your mortgage, you will at least want to have a credit score of 720 or higher. Fortunately, there is a sizeable market of potential homeowners who do not have good credit, and there a number of lenders who cater to these people.

To get a 30 year mortgage that has a fixed rate, you will want to have a minimum credit score of 620. If you have bad credit, statistics shows that you will have a credit score that is lower than this amount. There are two things you can do if you want to get a mortgage but are concerned with your credit rating. You can either wait and improve your credit before applying for a mortgage, or you can look at some of the mortgage options available for those who have less than desirable credit. Depending on your credit situation, it may take you years to repair you credit if you have had to file for bankruptcy. There are a number of reputable lenders that can help those with bad credit obtain mortgages for decent rates.

When you apply for a mortgage, the lender will want to look at your personal history, especially in the area of your finances. While everyone wants to get a low interest rate, there are a number of factors that are taken into consideration when the lender decides what the rate will be. One of the most obvious things that will be taken into consideration is your credit history. In addition to this, lenders will look at your debt to income ratio. This is basically of fraction of how your income compares to the amount of debt you have. The amount of the mortgage loan is also considered as well. Before you decide what type of loan you want to get, it is important to look around for the best options. There are a number of lenders available that can assist those that have low interest rates.

Author is a writer for a bad credit credit repair website. Find out how to get a bad credit mortgage loan at CreditLiberty.com. You can also get a bad credit auto loan by clicking the link.

Tags: bad credit, collection agency, credit, credit repair, fcra, fdcpa, finance, law, loans, poor creditbad credit, collection agency, credit, credit repair, fcra, fdcpa, finance, law, loans, poor credit

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Wouldn’t it be nice to make just one payment per month instead of several? Most of us not only have a mortgage payment. We have car payments, credit card payments, student loans, etc.

If you have been living in your home for a reasonable amount of time and you have acquired enough equity, you might want to consider a debt consolidation loan.

A debt consolidation loan is using the equity you have acquired in your home from monthly payments and appreciation to pay off all of your outstanding debt, leaving you with one monthly payment instead of several.

Consolidating your debt has the potential to save you a lot of cash on a monthly basis if you have accumulated a lot of debt.

The interest rates on credit cards alone are considerably higher than that which you would receive on a mortgage.

Another benefit is the interest you pay on your debt consolidation loan is tax deductible, unlike your other debt.

Consolidating your debt is a great way to save money, but don’t just dive in. Take the time to educate yourself about the mortgage industry and definitely shop around for the best deal. The mortgage industry is very competitive, so let them compete for your business.

Another benefit to consolidating your debt is that it will help your credit score go up.

The accounts you have outstanding that you owe money to are called open trade lines, by paying these off and than closing a few of them to keep your debt under control, you will be effectively increasing your credit score over time, which is how lenders determine your payment history.

Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/, a mortgage resource site devoted to making mortgage terms and products easy to understand.

Tags: banker, borrowing, broker, credit, finance, home loan, lender, mon, Mortgage, real estate, refinancebanker, borrowing, broker, credit, finance, home loan, lender, mon, Mortgage, real estate, refinance

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When you are purchasing a home, refinancing an existing property or obtaining an equity line of credit, or want to lower your current monthly payments, the following information will give you helpful hints on being prepared.

A lender has no personal feelings about you or your situation and therefore, you must look at getting a home loan as a business transaction.

Make sure all your finances are in order.

Let us start off with your credit as most loans are what are called “credit driven”.

Obviously, as you have probably seen on TV or heard on the radio, or seen on the internet, the higher your credit score the better for any new loan.

Here is how it can work for you.
If you have a good credit score, say 620 or higher, you have a better chance of getting a good interest rate on a new loan. If your credit score is 660 or higher, the chances of getting a really good interest rate improve.

If your credit score is below 620 you still have the ability of obtaining a new loan, however, you may have to pay a slightly higher interest rate, as a lender will consider you a greater risk. (There are many lenders who are willing to give home loans to people whose credit score is under 580, but again, the interest rate will be higher and there may be some restrictions.)

In the event you fall into this category, don’t be too concerned, because, once you have obtained this new loan and you make your monthly payments on time, pay all your other reported bills in a timely manner, your credit score will go up over time and in a couple of years, you may want to refinance that loan into a better interest rate. Establish your credit.

Another item a typical lender will look at is your “debt to income” ratios, which means the combination of all your reported credit, including house payments, credit cards, car payments and any installment loans minus the amount of your gross monthly income equals your debit to income.

Most lenders prefer no more than 40%; however, many lenders will go as high as 50% to 55%. If the lender goes as high as 50% to 55%, your interest rate will probably be higher as you are considered more of a risk, even if your credit score is considered good. This means that your total outgo is between 50% and 55% of your total income each month.

Does anyone remember the old rule, back in the 1950’s and 1960’s that your total house payment should be no more than one week’s paycheck? That rule doesn’t apply any more but you really should look at your total house payment not being too much over 30% of your monthly income. That does not include your other debt.

Here is something to think about when you are getting a new home loan.
Do you really need to buy a car right now? Yes, buying a car can really bump your debt to income ratios, especially with the price of cars today. This will affect how high of a loan amount you can get, therefore, when buying a house, if can affect the price you can afford to buy.

The next thing you want to be prepared for is your assets. This includes cash in the bank, retirement accounts, stocks and bonds, etc. I bring this up because, most lenders require what is called “reserves”. These are funds you have on hand to pay at least 2 months of your house payment, including taxes and insurance, in the event something were to happen and you couldn’t make the payment from your normal income. Each lender is different, but you should have a least 2 months reserves available. Even if the reserves are in a retirement account, that’s usually OK.

Keeping all of these items in mind when going for a new home loan you will protect yourself from being surprised during the course of the loan process.

Just remember the debt to income ratios, your credit score and assets or cash on hand and you’ll be in a great position to get exactly the loan you want.

Patti Schopper has been in the real estate industry over 36 years. Her goal has always been to keep her clients wants and needs first in all transactions. Patti has worked and lived in the Inland Empire, Southern California over 30 years. Patti would be happy to help you in your process of buying a home, selling a home or getting any type of loan.
www.realestateandloans4you.com All loans are subject to an underwriter approval.

Tags: credit, equity line of credit, home loan, lower monthly payments, purchase a home, refinancing a loancredit, equity line of credit, home loan, lower monthly payments, purchase a home, refinancing a loan

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