Bad Credit Mortgage Lender - What to Look For

If you have less than perfect credit and are looking to get approved for a mortgage loan, be careful not to make some common, costly mistakes. When dealing with sub-prime mortgage lenders or bad credit mortgage lenders, many people are taken advantage of because of their eagerness to get approved. Choosing and settling on a mortgage lender or mortgage broker is a very important decision. Make sure you don't make mistakes that you will regret later. Ask yourself, mortgage broker or lender these questions before you sign on dotted line: 1. Is there a pre-payment penalty on loan? Ask about this as soon as you are told you are approved. A 6 month pre-payment penalty is probably ok, but 1 year, or two years? Over 1 year is too long. Find out how much pre-payment penalty is. Maybe its not much. But if there is one, its most likely to be so much, that it would defeat purpose of refinancing loan before penalty time is up. If you are get a mortgage loan with a poor credit score, and then make your mortgage payments on time, you are likely to be able to refinance in 6 months to 1 year for a much better interest rate. You don't want to hurt your chances of doing that with a heavy pre-payment penalty. Sometimes brokers will neglect to tell you about one. 2. What will interest rate be? Sounds obvious, but lock down exact numbers. Don't settle for vague answers on this. Brokers may promise you a low interest rate, but as it gets closer, end up locking you in at a much higher rate. If you are doing a combo loan, 80/20, second mortgage may end up being one that has an interest rate that surprisingly jumps up as it gets close to loan closing. Try to negotiate a lower interest rate, especially if you are going through a mortgage broker, they will usually have some play in this area.

Parent Loans

Parent Loans If you are entering college soon, but have no idea how you are going to pay for anything from books to your actual tuition fees, chances are that you are going to be relying upon your parents in some way, shape, or form. For most first-time college undergraduates, college or university tuition is either paid through grants, because parents’ financial information allows use of grants, scholarships, because of academic or athletic prowess, or loans, because students can not pay for college or a university outright.

Understanding The Role of Parent Loans Few college students have established any amount of credit prior to college, so it is important that potential college students and parents of these students understand options at hand regarding usage of parents’ credit for obtaining college loans. First and foremost, however, you must remember that not all parents of college students have good credit to their names. If your parents do not have good credit, you may face troubles getting any company to give you a loan for college. Therefore, it may be required of you to obtain a grandparent, family friend, or other relative, who is then willing to cosign for you and your parents regarding a college loan. Be prepared to pay back these loans after college, however, as you are putting others at risk who may have cosigned for you if you do not pay back your loans!