Do you have bad credit rating that you think may prevent you from getting the home you want?
If you’re somewhat apprehensive about applying for a home mortgage loan due to past credit troubles, don’t give up your hopes yet. There are special home mortgage loans that you can apply for. You just have to know where to look and what to ask for (I’ll cover those next.)
Mortgage Application Secrets You Need to Know
Not long ago, if you had a bankruptcy, a foreclosure, or any other number of black marks on your personal credit report, you’d be hard pressed to find a loan company who would finance your home mortgage. And, if you did find a company to consider you as a borrower, you’d be paying through the nose with higher interest rates.
Thankfully, this is no longer the case.
Many refinancing or first time home ownership programs exist to help those who have gone through a bankruptcy or bad credit rating.
If you’ve been through a bancruptcy and are applying for a mortgage, here’s your first step:
First, obtain a copy of your credit report. Examine every item on the credit report and ensure there are no mistakes - especially if your bad credit rating is the result of a bancruptcy.
Make sure that your bankruptcy report is in perfect sync with your credit report.
Make sure the accounts listed as the bankruptcy are not listed individually or separately on the credit report.
All that should be listed on the credit report is your bancruptcy - not the debts that were owing for each individual company or service provider. Dispute any error on your credit report. You can do this online in less than 30 minutes at Equifax.
Take Note! Every time you apply for a mortgage or loan of any kind your credit database is queried. Every time this happens your credit rating slips a little lower. Why? Because it looks as though you are applying for credit in numerous places and being rejected. For borrowers with bad credit ratings this is the last thing you need! Your best bet is to apply for a mortgage with a broker or online service that submits your application to multiple lenders. When a broker or online service performs this task your credit database history is only accessed once, even though your application is submitted to many of the available lending institutions.
