Most lending institutions will not want to pull your credit report initially, until they are sure you are serious about getting approved. It costs lender money to pull your credit, so it is in their best interest to wait until they know you are serious before they pull your credit report. So, make sure when you apply for a mortgage loan, that your credit is not being pulled with your initial application. When applying for a mortgage loan online, here are some ways to know that your credit is most likely not being pulled.

1. Did they ask you to describe your credit? If they asked you to describe your credit, that is because they are probably not going to pull your credit initially.

2. Did they ask for your social security number? If they don’t have your social security number, they can’t pull your credit.

3. Search their website to see if they tell you whether or not they will pull your credit report initially. It may be listed under their frequently asked questions.

In applying for a bad credit mortgage, ask your lender about costs involved in obtaining loan, length and interest rate of your loan, and ability to refinance at a lower rate down road. Mortgages for people with poor credit are available through many lenders and with a variety of terms and conditions. Bad credit home loans can include a 2/28 home loan or a 3/27 home loan. The interest rate for a 2/28 loan is fixed for two years and fixed for three years in a 3/27 loan. This means that there will be a prepayment penalty during first two or three years of mortgage and that home loan cannot be refinanced prior to that time.

Sub prime lenders will work with any credit score and income level to help you finance home of your dreams at lowest possible cost. Contact several lenders that specialize in mortgages for those with bad credit. There are numerous variations in interest rates and terms offered by these types of lenders. Shopping around for a mortgage lender can save you thousands over length of your home loan, even if your credit is less than perfect.