Foreclosure
12 September 2007
Foreclosure doesn't just happen to people who don't make their mortgage payments. Your homeowner's association (HOA) can take your house or condo if you're not careful. In one case, a disabled California man lost his home in a foreclosure sale because he was $123 behind on his homeowner's dues. The house was worth $280,000. Unfair? Abusive? You bet!
Read More »
12 September 2007
Foreclosure doesn't just happen to people who don't make their mortgage payments. Your homeowner's association (HOA) can take your house or condo if you're not careful. In one case, a disabled California man lost his home in a foreclosure sale because he was $123 behind on his homeowner's dues. The house was worth $280,000. Unfair? Abusive? You bet!Read More »
Got Bad Credit? Take These Steps Toward a Better Home Loan
By Sarah ClarkNFNS Columnist
Some mortgage companies are firming up their requirements when it comes to sub prime loans--mortgages designed for those with less-than-perfect credit. But there are some steps you can take to ensure you improve your chances for qualifying for a home loan.
Examine Your Credit Reports
Make sure there isn't any erroneous information on your credit report that's damaging your score. Equifax, TransUnion and Experian are the three credit bureaus that gather credit information--contact them to secure copies of your reports.Explain Extenuating Circumstances
The Federal Reserve recommends explaining to mortgage companies or other potential home loan lenders any reasons you might have a poor credit rating. By explaining that health problems or short-term unemployment, for example, temporarily affected your financial situation may help lenders view your credit worthiness more favorably.Offer a Larger Down Payment on Your Home Loan
Making a larger down payment on a mortgage can be used as leverage to negotiate better loan terms. With a larger down payment, you may be able to reduce your monthly payments and in turn reduce the level of risk associated with the loan.Shop Around
The Federal Reserve also advises those with credit problems to shop around. Not all mortgage companies or commercial banks will assign the same level of risk to you. Try to find out which areas of your credit are causing the problems. For example, if your debt to credit ratio is the problem, devise a plan to pay off your credit cards before shopping for a home loan.These are just a few steps you can take to make sure you're getting the best possible loan despite a troubled credit history. Take some steps today and move closer to achieving more favorable mortgage financing terms.
Source
The Federal Reserve Board: Looking for the Best Mortgage
About the Author
Sarah Clark is a freelance writer specializing in a variety of consumer topics.
Other New Home Loans Articles
© NFNS 2008 Privacy Policy California Privacy