3. Pay down open credit line balances. If you can even pay down balances on any open lines of credit, this will boost your credit score. Your credit score is lowered when lines of credit are maxed out. You can make good use of your money by paying down credit card balances to boost your score.

Once you have used some of these techniques to boost your credit score, be persistent about contacting and applying with many different bad credit mortgage lenders. Many bad credit mortgage loan brokers claim that if they can’t do loan, then no one can. That is simply not true. All mortgage loan brokers have connections with many different lenders and loan programs. What may be impossible with one, can be very possible with another broker.

If your score is around 600 or slightly higher, you will probably have a pre-payment penalty. Pretty much all bad credit mortgage loans will come with a pre-payment penalty. Talk to your lender about details of pre-payment penalty. Find out how long penalty will last and exactly how much money penalty is. How much is fine for pre-payment on loan? This is an important factor to consider when comparing lenders.

To get a approved for a bad credit mortgage loan, be persistent, work on your credit score as much as you can to get it above that 600 mark and apply with or contact many lenders to compare mortgage loan programs.

1. Not all online home loan mortgage lenders have representation in all 50 states – so if you do apply for a mortgage loan online, make sure they’re represented in your home state.

2. Accountability can be a problem – you really need to stay on top of things, which can be troublesome if you don’t know what you’re doing.

3. You may be getting deal that best suits their needs, not yours.

4. Sometimes you have to pay an application fee even before you know if your application has been successful – something that is not always case in ‘real’ world.

5. If things go wrong, and your online home loan mortgage provider doesn’t come through, there’s no formal organization you can complain to.

So, while applying for a home loan mortgage online may be a good idea, to keep your options open you may also want to talk with a real estate broker in 'real world' about applying for your home loan mortgage. That way you can make your final decision of who to go with when you are closer to locking in loan.