foreclosures

Persistence is the key working toward getting approved for a badcredit mortgage loan. There are many factors that you, as aborrower have control over that can help you get approved fasterand easier. There are guidelines that most sub-prime lenders goby that, if you know them, can help you move through the processwithout getting stuck, unable to get financing.

If you have a bankruptcy or foreclosure, even if they arerecent, do not despair. Many sub-prime or bad credit mortgagelenders have what’s called, guidelines for bankruptcy orforeclosure seasoning. That means that they have a set amount oftime that must go by from the time of a bankruptcy orforeclosure before they will lend to a borrower. Usually thistime is 2-3 years, but many sub-prime lenders have no seasoningtime, which means, if your credit score is above a certainpoint, you could get approved the day after your bankruptcydischarge. Other sub-prime lenders have bankruptcy orforeclosure seasoning of 6 months or a year. The biggest factorhere will be your credit score.

Sub-prime or bad credit mortgage lenders will look closely atyour credit score. In order to get 100% financing with badcredit, lenders will usually need to see you have a credit scoreof at least 600 or higher. There are quite a few things you cando to raise your credit score to be above this 600 mark. Hereare a few suggestions:

2. Pay-off any small collection accounts or past due accountsthat you can. Every account that you pay off will help boostyour score. Once you have done this, get a letter ofnotification that the account is paid off and talk to yourlender. Most lenders have programs where they can, for a $75 feeper item, provide proof to the credit bureaus that an accounthas been paid off and have your credit and credit scoreappropriately adjusted within a day or two. This program issometimes called a “wrap it up” service. If you are in a hurryto get financed, this may be worth it to you.

3. Pay down open credit line balances. If you can even pay downthe balances on any open lines of credit, this will boost yourcredit score. Your credit score is lowered when lines of creditare maxed out. You can make good use of your money by payingdown credit card balances to boost your score.

Once you have used some of these techniques to boost your creditscore, be persistent about contacting and applying with manydifferent bad credit mortgage lenders. Many bad credit mortgageloan brokers claim that if they can’t do the loan, then no onecan. That is simply not true. All mortgage loan brokers haveconnections with many different lenders and loan programs. Whatmay be impossible with one, can be very possible with anotherbroker.

If your score is around 600 or slightly higher, you willprobably have a pre-payment penalty. Pretty much all bad creditmortgage loans will come with a pre-payment penalty. Talk toyour lender about the details of the pre-payment penalty. Findout how long the penalty will last and exactly how much moneythe penalty is. How much is the fine for pre-payment on theloan? This is an important factor to consider when comparinglenders.

To get a approved for a bad credit mortgage loan, be persistent,work on your credit score as much as you can to get it abovethat 600 mark and apply with or contact many lenders to comparemortgage loan programs.