How To Get A Mortgage Loan With Poor Credit
When you want to buy a home, but you have had credit issues in the past, you will need to solve the problem of how to get a mortgage loan with poor credit. You may have to check with several different mortgage lenders, before you find one that offers a mortgage loan with poor credit. Most lenders will require you to make a substantial down payment. If you do not have some money saved, it can be difficult to get approved.
- You may not be able get a mortgage loan with poor credit from your bank, but it does not hurt to try. Make an appointment with your bank’s loan officer, to see what the requirements are in order to obtain the mortgage loan. The loan officer will check your current credit score, and you can ask what you need to do to improve it. If the loan officer is not able to approve your mortgage loan, find out if they know of any other local sources who offer poor credit loans.
- Do an internet search for lenders who offer a mortgage loan with poor credit. This will increase your options, since many lenders that are not local will be listed in your search. When you check the websites of these lenders, stay away from the ones that do not seem legitimate. Narrow down your search to the ones that offer a mortgage loan with an interest rate and down payment that you can afford.
- Once you have decided on an online lender, submit your loan application. Contact the lender by email or phone if you have any questions about their approval process.You can also ask how long the approval will take, unless that information is specified on their website. Many times you will receive an answer to your application in just a few days. The lender will contact you if they have other requirements, or if they need additional information in order to make a decision on a mortgage loan with poor credit.
- Do not give up if your application is denied. Even though your application was denied, that does not mean you cannot get a mortgage loan with poor credit if you cure what the lender requires. Contact the lender to see what needs to be done to gain an approval. Many will let you use a co-signer to get a mortgage loan with poor credit. Some may require a larger down payment in order to reduce their risk. If there is nothing you can do to obtain an approval, try other lenders. Eventually you may find one with a list of requirements that you can satisfy to get an approval.