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Bad Credit Loans
Friday, Jun 15, 2007
Question: I have been working on my credit score for almost a year now and have brought it up to a 567 (from a 383). I really want to purchase my first home and was wondering if my credit score is worthy of that or will I be turned down?
Answer: With your current credit score, you may have a difficult time finding a lender willing finance your mortgage. While I do not think it is impossible for you to find a loan, I expect that you have a lot of work ahead of you, and you should expect to pay a premium in interest and costs for any loan you are able to obtain. Six months ago, I would have been much more optimistic about your prospects for finding a loan, but the sub-prime mortgage market, which offers loans to individuals with credit problems, has taken a nosedive in recent months, making it much harder for borrowers with less than perfect credit to find a loan.I do not want to sound totally discouraging, though. Your ability to qualify for a mortgage loan will depend on several factors aside from your credit score, including your income
(and your "Debt-to-Income" ratio), your performance on other secured accounts, and the amount of money you have available for a down payment (and your consequent "Loan-to-Value"). If you have a good income and a sizeable down payment, you may be able to find a decent loan despite your credit problems.
I encourage you to apply and test the waters with Bills.com's lender network:
Free Mortgage Quote
If you cannot find a loan that suits your needs, you may want to continue working on your credit score. The more you can increase your credit score, the better loan terms you will be able to obtain. A home purchase is a major investment, so do not act too hastily. Take your time to make sure you are in
I encourage you to apply and test the waters with Bills.com's lender network:
Free Mortgage Quote
If you cannot find a loan that suits your needs, you may want to continue working on your credit score. The more you can increase your credit score, the better loan terms you will be able to obtain. A home purchase is a major investment, so do not act too hastily. Take your time to make sure you are in
the best financial position possible before buying a home. The most important piece of advice I can offer is to make sure you do not borrow more than you can realistically afford to repay. The number of repossession has skyrocketed in recent months due to consumers’ inability to keep up with their adjustable interest rates, so make sure that you do not fall into that trap. The risk of this type of problem has decreased significantly in the past few months due to the crisis in the sub-prime mortgage market, but you should still be careful to examining all of the terms of a loan before you agree to it.
Good luck. I hope this advice helps you Find. Learn. Save.
Bill
www.bills.com
Good luck. I hope this advice helps you Find. Learn. Save.
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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