Bad Credit Home Financing - Buy A House Even With Poor Credit

Sub prime lenders come in two groups: reasonable and
unreasonable. Reasonable sub prime lenders offer mortgage
financing to high risk borrowers with slightly increased rates
and fees. Unreasonable sub prime lenders charge several extra
points and excessively high fees. Only through comparative
shopping can you know if a particular lender is offering
reasonable or unreasonable rates.

Compare Rates

Comparing rates is easy through online lender websites. By
entering basic information, you can quickly receive quotes from
several mortgage lenders. These quotes will give you a rough
idea of who offers the most competitive packages. Be sure to
add in fees and extra points when you are considering the cost
of the loan.

Real Quotes

Real mortgage quotes require more information than just the
loan amount and your income level. You will also need to
provide information about your home's location, your down
payment, and other personal information.

After you have compared general quotes, you can request
specific quotes from a handful of mortgage lenders. Online
mortgage applications allow you to do this from the convenience
of your home where you can easily find your financial and
personal records.

Applying Online

Once you have received a quote from a mortgage lender, you can
quickly finish the application process. Some lenders will
require additional information online, but most lenders will
simply mail out the final paperwork for your approval. After
the forms are signed and notarized, you send it back to the
lender for final processing.

Refinance Later

A subprime loan does not have to be permanent. Mortgage lenders
look at the last three years of your credit history when
considering your application. So after making regular payments
on your mortgage and all your other bills, you can consider
refinancing for a lower interest rate. Other ways to improve
your credit rating include paying off credit cards and
increasing your cash reserves.


About The Author: Carrie Reeder is the owner of
http://www.abcloanguide.com, an informational website about
various types of loans. To view our list of recommended sub
prime mortgage lenders online, visit this page:
http://www.abcloanguide.com/lessthanperfectcredit.shtml