Bad Credit - What Do Mortgage Lenders Expect? [mortgageprotectiontips.blogspot.com]
www.lendinguniverse.com Bad Credit Mortgage lenders provide financing and hard money loans refinancing nationwide. This story demonstrates the financial crisis Subject: Best explanation of the market crises I've seen yet Young Chuck moved to Texas and bought a donkey from a farmer for 0.00. The farmer agreed to deliver the donkey the next day. The next day he drove up and said, 'Sorry son, but I have some bad news, the donkey died.' Chuck replied, 'Well, then just give me my money back.' The farmer said, 'Can't do that. I went and spent it already.' Chuck said, 'OK, then, just bring me the dead donkey.' The farmer asked, 'What ya gonna do with him? Chuck said, 'I'm going to raffle him off.' The farmer said 'You can't raffle off a dead donkey!' Chuck said, 'Sure I can Watch me. I just won't tell anybody he's dead.' A month later, the farmer met up with Chuck and asked, 'What happened with that dead donkey?' Chuck said, 'I raffled him off. I sold 500 tickets at two dollars apiece and made a profit of 8.00.' The farmer said, 'Didn't anyone complain?' Chuck said, 'Just the guy who won, So I gave him back his two dollars Chuck now works for Goldman Sachs. Banks, mortgage brokers, credit unions and private investors compete for all borrowers residential and commercial Bad Credit Mortgage loan requirements. Simply complete a simple form and receive fast and accurate multiple results. Also borrowers get tools that track all the negotiations. Lenders compete- You decide ...
mortgageprotectiontips.blogspot.com Bad Credit Mortgage Lenders
The first step in preparing to purchase home or to refinance your current mortgage is to understand what a mortgage lender expects from you the borrower. Too often people just call a bank to see if they qualify for a bad credit mortgage without doing any research on their own about their own credit situation. There are many free ways to pull a credit report such as freecreditreport.com or you can pay 15 dollars and go to a bank that can pull your report. Make sure when you pull a credit report that it is a tri-merge report, meaning that all 3 credit bureaus are reporting on the credit report.
Now that we have that out of the way lets get down to the nitty gritty about what mortgage lenders want to see on a credit report and what they will accept.
The first thing an underwriter looks for is payment history. An underwriter does not want to see lates, collections, or judgments that have happened within the last 12 months.
They will however make an exception on a few bad things that have happened within the last 12 months ONLY if you have a high credit score. Why is that? The reason is that if the score is high it means you have a high probability of getting back on track to make your payments on time every month. If you have a credit score around 620 but have had lates within the last 12 months you will not be able to qualify for a bad credit mortgage loan product until 12 months have passed since the date of you most recent late.The second thing an underwriter looks at is the mid credit score. This score is calculated using special equations specific to each credit bureau such as the Fair Isaac model and beacon. FHA and VA loans require a minimum score of 620.
Conventional loans accept credit scores within the range of 680-740. If you have a score lower than a 680 absolutely look into a FHA or VA mortgage as they are amazing products that are usually much cheaper than a conventional mortgage loan.I cannot stress this enough, but buying a house is a process! If you can't qualify right now its OK! By researching your credit situation you can make a plan that can help you get to qualification status within the year. If you have had lates just work on getting on time and then just be on time for 12 months since the last late. Too many people just give up and think they'll never get into a house and ruin their credit even more. Don't get caught into this trap. Be proactive and work out a realistic plan to help you move to qualification material.
More Bad Credit - What Do Mortgage Lenders Expect? IssuesQuestion by : I need a bad credit mortgage lender (Indiana)? My husband and I want to purchase a home that the asking price is $ 16k. We have a down payment, and make substantial income, and he is a USMC military vet. We have poor credit, from the past, but know there are bad credit lenders for people like us, who have good current bill payments, and great income. We are in Anderson, Indiana , any help is appreciated! Our bank has told us no, due to credit issues alone, we are afraid all banks will do the same. Best answer for I need a bad credit mortgage lender (Indiana)?:
Answer by Geeta Fookata
no, you need GOOD lenders. try the banks, not the links that will show up here :))
