Obtaining a new home loan with a bad credit history
Credit-Land.com is an independent, advertising-supported web site.
Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site.
Compensation from our advertising partners impacts how and where their products appear on our site,
including, for example, the order in which they may appear within review lists.
Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Obtaining a new home loan with a bad credit history
Posted: December 31, 2010 Updated: December 26, 2012
The content is accurate at the time of publication and is subject to change.
For those with a bad credit history obtaining a mortgage loan is difficult. With a little bit of investigation one can find a satisfactory mortgage loan as it is not impossible. All it requires is a bit of planning and investigation. All options must be considered before choosing the one that would be well suited for one`s individual needs.
Some useful tips to follow:
• Every consumer is entitled to a credit report once a year from each one of the credit reporting agencies. This can be obtained free of cost. After obtaining the latest credit report take a close look to see the factors that are responsible for bringing down the credit score. One has to be aware of this while applying for new loans.
• Try and clear up credit issues as soon as possible. If there are unpaid debts then try to pay them off sooner rather than later. Lenders are more favorable to those who pay up their debts on time.
• Ensure that all the necessary financial information is available at your fingertips. This will come in handy while processing the loan application. Keep the pay stubs of the previous year as well as the W-2s of the last two years in hand. Keep all statements of current investments in hand as well.
• Obtain all the information with regard to the various types of mortgages that are available. Understand the difference between fixed-rate mortgages as well as adjustable-rate mortgages. Do a thorough research on the repayment terms and conditions on these mortgage loans. The online information that is available is more than sufficient.
• Try to opt for the FHA or the VA-guaranteed loan as these are backed by government funding and are available to those who might have had credit issues earlier on. These loan options are available at a reasonable rate of interest, and they also have fixed-rates.
• Do a lot of research and shop around for a loan that is best suited for your needs. There are many options to choose from especially for those with bad credits. Never choose a loan option that has high interest rates. Consult with different lenders and choose the one with the least interest rates. Websites are a good place to check and one can obtain all the basic information that one may require. Different lenders will have various offers for people with poor credit. Make a thorough comparison of the interest rates as well as all the fees that are associated with it.
• Never hesitate to ask questions and make clarifications with regard to any doubt that you may have. Before signing on the application for the mortgage loan ensure that you have understood all the terms and conditions thoroughly in order to avoid nasty surprises at a later stage. If one is not careful while choosing the mortgage loans, then it is easy to fall into another debt trap and things could get more difficult. Hence individuals must take extra care to opt for the right mortgage loan.
Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting – summer is here. Summer holidays are almost here, and you are in need of dire preparation. Continue reading
If you’re trying to find the perfect rewards credit card, you might feel like you’re drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often… Continue reading
Paying too much in credit card interest is not fun and you will definitely want to look for a way that will help you avoid paying credit card interest while paying off your debt. A balance transfer is that money-saving option to help you…. Continue reading
You've successfully subscribed!
Please specify the following:All these fields are optional
Your Credit History
Themes you are interested in:
By providing this information you help us make our news letters more useful
and informative. Thank you!