If attempting
to get a bad credit mortgage, using a mortgage broker is wise.
Some people contact traditional lenders when applying for
a home loan. However, if your credit is less than perfect,
these lenders may be unable to assist you. On the other hand,
some traditional mortgage lenders have begun offering bad
credit mortgages. Still, for a wide selection of lenders,
a mortgage broker is the way to go.
Who Are Mortgage Brokers?
When choosing a good mortgage, brokers operate as the middleman.
It is important to compare lender offers before accepting
a mortgage. Unfortunately, many homebuyers skip this step.
Comparing lenders is tedious and time consuming. Thus, those
in a rush to purchase a home make the mistake of submitting
one loan application and accepting the first offer.
Smart homebuyers realize that comparing lenders may save
them thousands of dollars. If using a broker, you do not have
to contact each individual mortgage lender. Rather, the mortgage
broker will do this for you. Moreover, brokers manage much
of the paperwork, which makes the process easier.
Reasons to Use a Mortgage Broker for a Bad Credit Mortgage
Each homebuyer has a different situation. Hence, there are
different loan programs to accommodate each borrower. For
example, some lenders specialize in loans for people with
poor credit, no credit, foreclosure, bankruptcy, and so forth.
Additionally, there are loan programs designed to offer down
payment or closing costs assistance.
Mortgage brokers have access to various lenders and loan
programs. Therefore, they are able to locate the best loan
package. Because brokers work with many lenders, they obtain
multiple quotes for you. By doing so, you are able to easily
compare a lender’s offer and terms.
Choosing a Good Mortgage Broker
It is important to choose a mortgage broker with a good reputation.
Although some brokerage companies advertise heavily, this
does not necessarily guarantee good service. Instead, get
referrals from family, friends, acquaintances, etc.
If using a local broker, contact the Better Business Bureau
to make sure a particular broker does not have any complaints.
Similarly, if using an online mortgage broker, search online
rip off reports for complaints. Another way to find a good
broker is to consult a listing of recommended mortgage brokers.
View our recommended lenders for Bad Credit Mortgage loans.
Carrie Reeder owns ABC Loan Guide, an online resource with
information about Mortgage Refinancing Online and Home Equity
Line of Credit lenders.
