Bad Credit Home Loan Financing - Take It To The Bank
It used to be pretty easy to get bad credit home loan financing. Countrywide specialized in these mortgages. But, we all know what happened to Countrywide – it went belly up and Bank of America was forced to buy up its bad assets. Therefore, bad credit home loan financing is less available today.
That doesn’t mean you can’t get bad credit home loan financing. It just means you’ll have to dig a little deeper to find it.
The first thing you should do is determine whether you really are a subprime borrower. Many people are pleasantly surprised to find that they have better credit scores than they had thought. If your credit score is better than 620, you probably don’t need bad credit home loan financing – you can get into a traditional mortgage.
Secondly, if you are on the border – if you have credit between 580 and 620 – try to raise your score. Get your credit report and challenge any inaccuracies. If you have any bad debts, make good on them in exchange for the lender marking them “paid in full” on your return.
But, if these tricks don’t get you into normal mortgage territory and you still need bad credit home loan financing, go talk to a lender at your bank to get an idea of what you will pre-qualify for. If you have credit below the 580 mark, you may be unpleasantly surprised at how much the premium you will pay on the loan is.
If that’s the case, then get on the internet and search for “bad credit home loan financing.” There are many lenders who specialize in such loans. There are also services where you enter your basic financial information once and get several loan quotes. These aren’t firm offers because there are still variables such as your proving your financial information and the property you choose itself, but it should give you a good idea about whether you actually can qualify for a home.
You do have some things going for you right now, even if you have bad credit. There are millions of homes sitting vacant. Banks want to get these properties off of their books and are willing to go to extraordinary lengths – including bad credit home loan financing schemes – to sell these homes. Also, interest rates are currently low. So, even if you are paying a premium, it may be lower than it was a couple of years ago.
In addition, there is a nine month supply of new homes. Builders want to get rid of these properties. They may be able to offer you attractive rates so that entire tracts aren’t sitting empty.
The good news is that if you get into a high interest rate bad credit home loan financing situation, you can get into a lower rate in as little as 24 months providing that you make all of your payments on time. In fact, one of the best ways to clean up your credit and raise your credit score is to buy a house and keep current on the payments.
If you are looking to buy a home, dig deep to come up with the best bad credit home loan financing.
Bad Credit Debt Consolidation Loan - The Secret To Getting One
A bad credit debt consolidation loan can get you out of a financial hole very quickly. The question is if you've got a bad credit history will the banks still lend to you? The answer is probably. That's because a bad credit debt consolidation loan can make as much sense for them as it can for you.
You see the banks really don't care about you. I know, that came as a surprise right? But they do care about themselves - second surprise! So they might be happy to make a loan to help sort out your bad credit. Debt consolidation loan is just another way of saying refinancing of course. And the reality of that is the bank will take the money you already owe them and spread the payments over a longer period.
Now what happens is that because the money they are lending you is outstanding for a longer amount of time they can charge you more interest. See what I meant when I said they don't care about you?
Of course from your point of view you are probably going to be benefiting by having lower repayments, less worry and you'll get your credit history back on track. So it's win-win.
Now to actually get a bad credit debt consolidation loan you're going to have to convince the bank or loan company that they really are going to be benefiting. Just telling them that they will make more money in the long run won't cut it. You need to present a well thought out case as to why it makes sense to consolidate your existing loans.
You need to sit down and work out a plan before you even think of contacting them. In that plan you need to be able to tell them how your bad credit came about. Was it a problem with your job? Was it down to ill health? You also need to explain what has changed now and how you will be able to meet the new payments.
Try not to be over optimistic here. And for goodness sake tell them the truth, if you don't they will almost certainly find out and you'll fail. They're trained to spot lying by applicants.
The secret to success is having a good, well-though out reason why they should grant you a bad debt consolidation loan.