Can You Still Get a Mortgage?

Unfortunately bad credit can haunt you for the rest of your life. If there are bankruptcies or foreclosures on your credit report, you know how hard it is to get any line of credit.

But, we know that even though mistakes were made in the past, your financial situation and behavior can be reformed. Some lenders understand this as well, and the sub prime lending market has grown and become very competitive. The lending market can be broken up into two main segments: the prime, those with average to good credit who are not huge financial risks, and the sub prime market, for those who have poor, very bad or no credit.

Lenders can give ratings to a certain sub prime client giving them a rating from A-D: A being the best rating and D being the worst. When you fall into the C or D category, you are considered very high risk and more likely to default on a loan than that of a person with an A or B rating.

Sub prime lenders can loan the money you need by protecting themselves. They do this through higher rates and fees that prime lenders would not charge. Be careful, because some sub prime lenders will take advantage of your poor credit history and charge a ridiculous amount in fees and interest rates. If you can show steady employment, a good income, an effort to pay back the money you owe and are doing it in a timely fashion, you are more likely to get a better rate than that of someone who is not taking any steps to fix their credit.

Fortunately for the consumer, this sub prime market is extremely competitive and you do not have to accept the first lender who offers to loan you money. You actually have the luxury to shop around and compare rates, even if you have the worst of credit cases.

Don’t allow credit mistakes in the past to dictate how you live your life today. Buying a home is still an option regardless of your credit history. And, as long as the sub prime market continues to be competitive, you, the consumer is at a huge advantage.

If you make your mortgage payments on time every month, then you will watch your credit grow. Sub prime lenders specialize in this area, so allow them to help make your credit score even better. Be sure the sub prime lender you use is trustworthy and qualified. There are sharks in the industry, so be sure to ask for referrals and look at licenses.

So, go buy your home and repair your credit at the same time! Take advantage of the opportunities you have at your fingertips.

Courtesy of : The Kiper Team Offices:(636) 898-123, HOTLINE: (314) 729-1010 CLICK HERE to email us.