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Low Credit Score Mortgage [mortgage-investment.blogspot.com]

Low Credit Score Mortgage [mortgage-investment.blogspot.com]

Teresa Tims, www.TheSoCalLoanPro.com and President of TDR Mortgage, lay's it down on what the lenders are looking for to give you a home loan. If you don't qualify she gives you a step by step process on what to do to be a homeowner in California.

mortgage-investment.blogspot.com How to improve a low credit score, Part 2 Hot Home Loan Credit Series

If you want to get a low credit score mortgage, you have probably found it difficult to get financing. This is because your bad credit score affects your risk level to lenders. If you need to purchase a house, then it is important that you take certain steps in order to improve your credit rating.

The first way to improve your credit rating is to check you FICO score. By checking your credit rating, you can find out exactly how bad your credit is. You should also make sure that scan over the report and make sure there are no mistakes on your credit history. If you find anything that is incorrect, you should immediately contact a credit report agency.

Another step you can take in order to secure a low credit score mortgage is to save up for a down payment. If you can save between 5-10% of the home value as a down payment, the lenders are more likely to give you a loan.

Putting a larger down payment reduces the risk that lenders bear on the loans. You are also more likely to be approved for a lower interest loan as well.

You should also see if you can find someone with good credit to cosign the loan. A cosigner is someone that agrees to cover the mortgage if you fail to miss payments or default. This gives the lenders more security when they give you a loan, because they take into consideration the cosigner's credit rating.

Before applying for a low credit score mortgage, make sure that you look around at different lenders available. It is important to see if you can get a better interest rate by looking online and seeing the different lenders available.

Suggest Low Credit Score Mortgage Articles

Question by Kat: What is the current disqualifying credit score that mortgage lenders have earmarked? Let's say someone wants to get out of having to buy a new property they had put down a deposit for a couple years ago. The only way I see to get that money back as stated in the contract is to disqualify for the loan per the developer's selected lender. How can I do that? So I'm wondering how low do I have to get my credit score to ensure I won't qualify?! Best answer for What is the current disqualifying credit score that mortgage lenders have earmarked?:

Answer by RT(R)
there is no set score. depends on how money you put down, how money you make, if you've been at your job or career long enough etc.

Answer by daeve930
Acceptable credit scores vary bank by bank. In many cases they are only one piece of the puzzle anyway. Purposely screwing up your credit would be a very dumb thing to do. You would have to be losing a ton of money to make this worthwhile.

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