Think You Canít Get a Mortgage?

Think You Canít Get a Mortgage?
If you finally have found a home of your dream but your credit status makes you think that you can’t get a mortgage, don’t give up. There are numerous programs that help people with less than perfect credit to get a loan. Here you will find information on how to choose the one that suites you the most.

Firstly you need to figure out what your actual credit score is. This is needed because many lenders will tend to take advantage of you because of your low credit score. Some companies can charge higher rates than your score actually warrants, too. There are many services you can use to find and manage your score. Use them!

If you already know your score you can start to look for a loan. In most cases lenders divide their clients in 4 categories – from A (the ones with the best credit history) to D (the ones with the worst). But even if you fall into the fourth group don’t be desperate; probably you’ll still be able to find a program that will help you.

There are companies that will work with you regardless of weather you have tax liens, judgements, charge-offs or collections. However, you will be assigned with a higher interest rate and will be required to put down a larger deposit. In most cases the ones that have a bad credit history can finance only about 80% of the price so you will be asked to put down the difference.

Once again, doesn’t matter what your credit history is or if you had county court judgements levied against you, you should be able to find a lender that will be sympathetic to your individual case.

Another good thing to do is to get pre-approved. Two good things about the pre-approved mortgage is that you know exactly how much home you can afford before you start looking for it and that you are protected from any rate increases while looking.

Firstly consult your mortgage specialist and find out everything about possibilities and options available to you. Then choose the one that suites you the most. Your mortgage specialist and the real-estate agent work as a team to help you to find the best home and choose the right financing.

Here are some documents that you probably will be asked for when finalizing your mortgage deal:

1. A copy of the real estate listing of the property. If the home is still to be built, the mortgage lender will need to see the architect's or builder's plans and details on lot size and location.

2. A copy of the offer to purchase or the building contract, if this document has been prepared.

3. Documents to confirm employment, income and source of pre-approval.

Once you have your pre-approval done, finalizing your deal is only a matter of several details that your mortgage specialist will explain to you.

© 2010, Jericho Mortgage — Think You Canít Get a Mortgage?