Finding the right lender or broker for your bad credit mortgage is of the upmost importance. This person will be your best chance at getting a good deal – and if you find the right person, they can also be your advocate with the bank or lender.
When you shop – ultimately you’re shopping for the best loan, but you also want to find a bad credit mortgage lender that you can work with. This process can take 30-60 days or sometimes longer, so be sure you are working with someone who will follow through, and who you can get along with.
Online Mortgage Lenders for Bad Credit
There are some plusses and negatives in shopping for a bad credit mortgage online. The drawbacks are that it’s much harder to build up a personal relationship with the person on the other side of the internet. If you can, try to make some kind of personal contact via phone. If that isn’t possible, try to build a rapport over email. Ask them if they like their job and how long they’ve been doing this type of work. Ask them to share with you their funniest story relating to finding someone a bad credit mortgage. If you can build a personal relationship, then shopping for a bad credit mortgage lender over the internet can be a great way to go.
The plusses are that you can quickly compare a lot of different loans, apply online and get feedback instantly. You can use their online tools to determine how much you can qualify for and what kind of interest rates you can expect to get. You can also track your application’s progress online and in most cases, the response time is fairly short.
Brick and Mortar Mortgage Lenders for People with Bad Credit
Applying for bad credit mortgages can be a time consuming process, and often there are a few times when you have to meet with your broker. Having someone local that you can work with can be an asset – if you can find someone you enjoy working with. It’s particularly nice to be able to pick up the phone and make a call if you have a question – and to know you are dealing with a real human being instead of an automated system.
Make sure you ask what kinds of loans they handle. Some brokers specialize in subprime loans, while others are FHA and Fannie Mae approved brokers. The more types of loans your broker or lender can offer, the better chance you will have of finding a loan that meets your needs.
Finding a Mortgage Lender for People with Bad Credit
Ask your friends and family members for referrals – who did they go through when they purchased their home? Ask co-workers and other people you see on a semi-regular basis, like at your child’s school or little league. Often your real estate agent will have a long list of people they can refer you to.
You can also do a search online and compare rates and information from various companies. Be sure to find out exactly what kinds of loans they are authorized to present and always read the fine print. If you need an added layer of security, never hesitate to take your paperwork to your attorney to have him review it before you sign anything. Mortgages will cost you hundreds of thousands of dollars – spending a few hundred to make sure you aren’t missing any important details can be well worth it.
In the last article of this series, we will be discussing how to get the most out of mortgages for bad credit.
Ins and Outs of a Bad Credit Mortgage | Part Six: Getting the Most out of Mortgages for Bad Credit
Here is the list of all the articles in this series:
Ins and Outs of a Bad Credit Mortgage | Part One: What are Bad Credit Mortgages?
Ins and Outs of a Bad Credit Mortgage | Part Two: Should I Repair my Credit?
Ins and Outs of a Bad Credit Mortgage | Part One: How Much of a Bad Credit Mortgage Loan can you Qualify For?
Ins and Outs of a Bad Credit Mortgage | Part Four: Types of Mortgages for People with Bad Credit
Ins and Outs of a Bad Credit Mortgage | Part Five: Finding the Best Bad Credit Mortgage Lenders
Ins and Outs of a Bad Credit Mortgage | Part Six: Getting the Most out of Mortgages for Bad Credit
photo credit: woodleywonderworks