How_To_Get_Home_Loan_With_Bad_Credit

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Title:
How To Get Home Loan With Bad Credit

Word Count:
452

Summary:
With flexible payments and terms, today’s mortgage lenders offer a wide
variety of loan products. Who benefits? Frequently, it’s borrowers with
less-than-perfect credit.

Let’s say you want to refinance your mortgage or apply for a new home
equity loan, but are concerned about your spotty credit history. The
solution could be a so-called bad credit home loan. These mortgage loans
are specifically designed to assist borrowers consolidate debt quickly
while keeping their mont...


Keywords:
home loan with bad credit,bad credit home loan,debt relief,debt
consolidation,bad credit loans


Article Body:
With flexible payments and terms, today’s mortgage lenders offer a wide
variety of loan products. Who benefits? Frequently, it’s borrowers with
less-than-perfect credit.

Let’s say you want to refinance your mortgage or apply for a new home
equity loan, but are concerned about your spotty credit history. The
solution could be a so-called bad credit home loan. These mortgage loans
are specifically designed to assist borrowers consolidate debt quickly
while keeping their monthly payments affordable. Best of all, you don’t
have to have a spotless credit record to qualify.

How does bad credit affect your mortgage?
Your credit score plays a key role in many aspects of your life,
including the process of applying for a loan. Lenders scrutinize your
payment history on all previous loans, bankruptcy filings, and other
financial factors when deciding whether or not to approve your
application. If the lender isn’t happy with your credit history, you
could be required to make a larger down payment or accept a higher
interest rate.

Fortunately, bad credit home loans are geared to borrowers with less-
than-perfect credit. You can choose cash-out refinancing, which allows
you to trade your existing mortgage for a new one and receive additional
cash. Many homeowners use the cash to eliminate higher-interest balances
such as credit card accounts. Just remember: the money is drawn from your
home equity and making a withdrawal will deplete your stake in the home
investment.
Same rules apply to a Home Equity loan. Also known as a “second
mortgage,” these popular loans are disbursed in a single lump sum,
generally at a fixed rate. Homeowners frequently use home equity loans to
consolidate their unsecured personal debt such as auto loans, student
loans, or credit card accounts.

How can I improve my credit score?
Paying off your credit cards and settling any outstanding loans will
certainly help, but if you have a history of late or missed payments, it
won’t undo the damage overnight. Improving your credit score takes time,
so after paying down your debts, make an effort to consistently pay your
bills on time.

Incidentally, if you’re comparing multiple lender offers, you needn’t
worry about your credit score taking multiple hits or affecting your
score adversely. Credit scorers treat multiple mortgage inquiries as a
single inquiry, provided they fall within a 45-day window. Just be sure
your comparison-shopping falls within this time frame.

For an accurate picture of your finances, request your credit scores from
the three bureaus and see where you stand. Scrutinize your accounts for
possible inaccuracies or signs of identity theft. Your efforts to secure
a bad credit loan will improve greatly when you can see what your lenders
see.

				
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