Bad Credit Home Loans - Pre-approval Is Still Possible With Adverse Credit HistoryWritten by Carrie Reeder
If you are among millions with less than perfect credit, there are many sources available to you in obtaining a mortgage. Lenders that specialize in mortgages for those with bad credit are competing for your business. The lender will analyze your credit report, credit score, debt-to-income ratio, and your employment history. You may also be asked to provide statements from your utility companies and other creditors to help form a complete picture of how you manage your finances. The lender will then inform you of how much you can afford to spend on a mortgage and terms of proposed home loan.
A bad credit home loan will naturally be made with a higher rate of interest than for those with good credit. Keep in mind that your home will still appreciate in value and after maintaining a good payment history for a period of time, you may be able to refinance your mortgage at a lower interest rate and lower your monthly payments. Along with making you monthly mortgage payments in a timely manner, you can also help improve your credit rating by lowering your current debts, avoid applying for more new credit, and keeping your credit card balances low.
Bad Credit Home Equity LoansWritten by Carrie Reeder
A home equity loan allows you to borrow against equity you have built in your house. Even if you have no equity, you may be able to borrow up to 125% of value of your home. You can use extra cash to consolidate bills, fund college tuition, or any other reason you see fit. If you have bad credit, you can still apply and be approved for a home equity loan. Mortgage lenders are offering great interest rates and easy terms on home equity loans, even if your credit history is less than perfect.
A home equity loan will give you financial means to pay off your debts and begin rebuilding your credit. You can use cash for any reason you choose and you may even lower your monthly mortgage payments in process. Don't let bad credit stop you from applying for a home equity loan. Lenders are competing for your business and can offer you numerous options and choices when you apply for a home equity loan.
Homeowners have an advantage when bad credit prevents them from obtaining new credit accounts. You can use equity in your home to secure a loan up to 125% of your home's appraised value. Bad credit will not exclude you from apply for and being approved for a home equity loan. Lenders are currently offering loan products for all types of credit situations. If you have bad credit and own your home, a home equity loan can be designed to fit your individual needs. You can begin rebuilding your credit and get extra cash you need to pay off high interest credit cards, past due accounts, and any other expenses you may have.