Obtaining A Mortgage Despite Bad Credit

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People with bad credit know how tough it can be to get approval on a home mortgage loan or to refinance their pre-existing loan. These folks have to work harder to get their loan approved, and even harder still to get a decent interest rate.

The majority of mortgage brokers will say that if they’re not able to help you out, there’s no one else who can do it, either. But don’t fall for it! Each individual mortgage lender or broker accesses very different programs for loans, and a loan program that could be completely undoable for one particular broker could be easy as pie for another one. A few mortgage brokers even have available loan companies that focus specifically on mortgage loans for customers with shaky credit ratings, and these companies maintain their niche by having looser restrictions for qualifying than most of the competition.

Persistence is the secret to overcoming bad credit and getting that home mortgage loan approved.  Boosting your credit score by paying your current bills on time will only get you so far — you have to understand the loan application process itself in order to get it to work for you.  In particular, you have to understand how to get your application seen by as many lenders as possible without too many credit-score-damaging inquiries being made into your credit report.

Make applications with brokers on the internet who will in turn send the applications to several different lenders, saving you time and legwork.  Usually these kinds of companies will give out your application to dozens or even hundreds of lenders that are all eager to help you out with refinancing, purchasing, and so forth, and then narrow it down to the top four. Services online for mortgage brokering are active almost everywhere in the United States.

The best thing about applying online is that it can be done such that there is minimal impact on your credit score.  This is because most online mortgage brokers won’t even pull your credit report when you apply, but only after you have started to work with a specific mortgage lender.  Thus, you can apply multiple times without having to worry about another inquiry showing up on your credit report every time you submit a new application.

Talk with different mortgage loan brokers, and if possible have one of the brokers to pull your credit so that you can see your credit score. Next, go to other lenders you are interested in working with and talk to them about your situation. Discuss your credit score, income and how much you are able to put down on a property. Before your credit is pulled, have them to give you some estimates of potential costs.

Don’t let your bad credit keep you from getting into a home.  Be persistent and make sure you have applied with every available mortgage lender or service company.  Make your applications online if possible; this will allow you to apply with many more mortgage lenders and get responses more quickly.

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