Jan Lindsey - MortgageLoan.com | 11/28/2006 - 2:07am
Finding and buying a house can be stressful under the best of conditions. If you start the process with a bad credit history, the uncertainty of your position can add layers of worry. You can peel some of those away, however, by obtaining a mortgage pre-approval that will tell you exactly what you can afford to spend.
Bad credit won't necessarily keep you from getting a mortgage, but it will mean paying higher interest rates in the subprime mortgage market. Predatory lenders lurk in these waters. Learn how to recognize them, and you'll be able to swim out of harm's way and freely shop for the best deal.
Having bad credit doesn't mean you can't qualify for a mortgage. In fact, there are reputable mortgage lenders, called subprime lenders, who actually specialize in bad credit loans. Here are some tips on selecting a subprime lender.
Overcoming bad credit is the financial equivalent of scaling Mt. Everest. No matter what the reasons for your bad credit-overspending, medical bills, divorce, loss of job-your life is a struggle compared to A-credit friends and family. But there's a way out-a mortgage refinance can get you back on your feet, despite how risky you are to creditors.
There are mortgage loans available for everyone, even those with a spotty credit history. Bad credit mortgages and no-document loans can serve the same purpose in different ways.
