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By Robbie T. James
When you want to buy a home or refinance your existing mortgage, the first thing you want is a low interest rate. But, running a close second on your list of wants is the ability to take out a home loan with as little down payment as necessary – maybe even with no money down.
These wishes are by no means impossible to attain. The important thing is to be persistent in finding a lender who will accommodate your needs. But, just calling or contacting online any given lender that you come across will not only be time-consuming, but the search could very well end up being a fruitless one. What you need is to know which lenders to contact and how to deal with them in order to greatly increase your chances of loan approval.
All of this is even more true if you are going for a home loan and you have a bad credit score. As a matter of fact, any FICO score from TransUnion, Equifax, Innovis, or Experian that is below 670 is considered sub-prime, and a score below 600 is considered a poor or bad credit score. If your score is anywhere near this range, you are going to want to do everything in your power to find the right lenders to work with.
Here are 3 steps to getting no-money-down home loans for bad credit borrowers:
1. Sharpen your knowledge about your own financial history:
Before you do anything that will have a lasting effect on your long-term financial future, it is a very good idea to raise your knowledge level about your own financial situation. Order all 4 of your credit reports and scour them for both good and bad flags concerning your credit history. Be ready to discuss any and all of them, if asked. Reason: savvy bad credit home loan lenders will know what to ask because they do not merely look at your credit score when considering your loan application.
2. Plant your seeds in fertile soil:
If you have special mortgage loan needs, such as wanting a no-money-down home loan for bad credit borrowers, you will need to plant your seeds (i.e., submit your applications) in fertile soil. In the case of mortgage loans, this means: do not just go after the average mortgage lender. Instead, apply for a loan via lenders who specialize in working with folks in your credit score range. Look for “bad credit mortgage loan lenders” and build yourself a healthy list of them.
3. Farm all of your bad credit home loan applications until you get multiple offers:
Figure that each mortgage loan application you fill out will take you between 10 and 30 minutes to complete. So, if you fill out 4 of them, that is a maximum of 2 hours of your time. Sound like a bit of a pain? Well, remember this: each additional lender you apply to could turn out to be the one that offers you the lowest-possible rate. And a lower rate could save you tens of thousands over the life of the loan. Worth the extra 30 minutes of your time? Most would agree that it is.
Consider these 3 steps to taking out a no-money-down mortgage loan, even if you have a bad credit score.
About the Author: Get access to more bad credit mortgage lender tips and lending resources at:
Bad Credit Mortgage Loan Tips
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Source:
isnare.com
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