Fees and terms can be better during off-season of fall and winter for borrowers. When there is more competition for fewer loans, mortgage lenders will lower their fees. If you do secure a mortgage during spring or summer, double-check fees to make sure they are not inflated.

Down Payments Wanted

A down payment is often necessary for a person with a bad credit record. The larger your down payment, easier it is for you to secure a loan. You can also avoid PMI by putting down at least 20% of home’s value.

Fees Add Up

Interest rates are an easy way to look at a loan, but you should also consider fees involved in a sub-prime mortgage. Some fees are to be expected to process loan, but others can be excessive. When you get a mortgage offer, be sure to add up fees from each financing package and compare those with interest rates.

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Fees should be included in price of loan when you are comparing prices. Adverse credit will result in some fees, but they should not be excessive. You should expect to pay up to five points for most loans. There are always exceptions to this rule, but comparison shopping should give you an idea of what is reasonable.

Details Count

Once you have a competitive financing offer, be sure to read terms. Some lending companies charge high fees for late or missed payments. While late fees are common, they should not be extreme. If you have any questions, contact lending company and they will answer your questions.

Include A Down Payment

A down payment between 5% and 20% is usually required for people with a credit score less than 600. If you provided a down payment larger than minimum, you can often get a better offer. In addition, a down payment of 20% or more will save you from expense of PMI.

To view our list of recommended bad credit or subprime mortgage lenders online, visit this page: Recommended Subprime Mortgage Lenders Online.