Getting a sub prime Mortgage with poor credit score
The first step in obtaining a sub prime mortgage is to get a copy of your credit score and credit report. You can do this online for free at various websites. When you find out what your credit score is you will have a better idea what kind of mortgage you will be able to be approved for. Typically if your credit score is above 620 you will be able to go the traditional route with a regular home loan. If it falls below 620 you are a good candidate for a sub prime mortgage. You can also compare lenders online, which makes the process easier than it’s been in the past before the advent of the Internet.
What you need to apply for a sub prime mortgage
Next you will want to look closely at your credit report. Be sure to look at all past due accounts and gather up all the information you may have regarding the debts. Including your tax documents and paystubs.
Sub Prime Mortgage Requirements
Also remember that during this loan process, all accounts will be looked at so don’t forget anything or think it will be overlooked. It won’t be! If you have any judgments or liens, now is the time to gather that information as well. Your prime mortgage lender will want to have all of the information before deciding on an interest rate and approving you for a sub prime mortgage loan.
Applying for a Sub Prime Mortgage
The process of applying for a sub prime mortgage does not need to be daunting. It also need not be embarrassing for you. It is actually quite simple. These types of loans are designed with many financial problems in mind and are specifically designed to help you improve your credit. As well as buy a new home. In just a few short years your credit will on the mend. It really doesn’t take long to start improving your credit using a sub prime mortgage.
Rebuild your credit with a Sub Prime Mortgage
This type of loan is ideal for those who have dealt with a bankruptcy within the last three years or a foreclosure within the last four years. This offers the opportunity for those starting to rebuild their credit or recover from financial losses to gain good credit. What a great opportunity for almost everyone to be able to own a home. Provided you have the income to pay your bills, you should not have a problem getting approved. Be sure to contact several institutions to see where you may find the better rate. Even though you might have poor credit it is wise to have several options available to choose from.