You are allowed to obtain one free credit report per year. It is wise to obtain yours before even speaking with any lenders. This will let you know ahead of time where you possibly stand in obtaining your home loan. The federal FACT act was passed in 2003, and guarantees you this information. This information will help you see exactly where you stand in terms of receiving credit. Review it carefully, so that you are prepared to negotiate when getting a loan. If there are errors on your report, be sure to contact the agency reporting the error to change your report.
Your credit score will determine your interest rate?
Now that you know your actual credit score, it’s time to prepare to convince your lender that you’re a good prospect. Next you will want to educate yourself on the different types of mortgage loans available. There are both secured and unsecured loans. A secured loan is secured by putting up collateral. An unsecured loan requires no collateral. There are also other unsecured loans available just for those with a poor credit history. This can be ideal for many first time home buyers who have less than perfect credit. If your credit score is above 620, you may qualify for a traditional mortgage. However, if your score is below 620, you should check with an online lender about the possibility of a sub prime mortgage.
Home equity loans – Florida mortgage refinance loans
Most loans designed for those with poor credit essentially just have higher interest rates. They will help you rebuild or improve your credit as well. The high interest rate can be remedied after a few years of making timely payments. At which point you will be able to refinance your home at a lower interest rate.
The Importance of online mortgage quotes
Before you go to a bank or other financing agency, you should get a quote online. This is a good way to have a general idea of what information you’ll be expected to provide. It will also provide you with an idea of what type of interest rates, financing, and down payment you can expect to pay. Get several quotes online, so that you are able to compare and get the best possible rate from your lender. Be sure that you get these quotes, as they will provide you with much needed leverage as you approach a potential lender. You’ll know what interest rates are too high, and you’ll know what type of payment you can afford. This information will help you to make an informed decision in terms of your new loan Florida refinance mortgage loan & bad credit home loans.
Another option available to those seeking a home loan with poor credit is to use a broker. A broker can help you determine exactly what type of loan you will qualify for. They will also be able to answer any of your questions or concerns and help you make the best decision possible regarding your home loan. You can find a broker through your yellow pages or online. You can ask your lending institution if they offer this service as well.
Florida refinance mortgage loan & bad credit home loans
It is possible to obtain a home loan with bad credit. Your interest might just be higher and you will likely have a few more hoops to jump through than a traditional mortgage loan. The good news it is possible and there are even home loans designed for those with poor credit. Be sure to research all of your options thoroughly before deciding which loan is right for you.