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She clings to a wet freezing blanket, Her owners carelessly dumped her and all her belongings

How Mortgage Loans For Bad Credit Borrowers Can Exist, And Be Viable

It almost seems mysterious that bad credit borrowers can possibly be granted a large enough sum of money to buy a home. Surely, lenders would steer clear of granting mortgage loans for bad credit borrowers, purely based on the unimpressive credit history of the applicants. But in fact, lending such sums to such applicants is not the risk it seems.

Making these loans available to bad credit borrowers is not as crazy as it seems. Lenders very carefully assess the affordability of every loan application, and given that mortgage assessments can take anything from 60 days to 90 days, they are clearly sure of their decision when they give someone seeking approval with low credit scores the green light.

But what does this mean to the borrowers themselves? And are the terms offered as affordable as many mortgage providers testify they are. After all, securing a mortgage loan means taking on a very large debt and committing to it for perhaps three decades.

Why Credit Scores Can Be Ignored

Well, in fact, they are not completely ignored, but they are certainly not the debilitating factor that many people seem to think. A credit score is recognized by lenders as only being a value reflecting the credit history of an applicant, but not their current financial stability. So, offering mortgage loans for bad credit applicants is not the risk it seems.

However, the scores do have an influence when it comes to deciding on the interest rates to charge. The lower the score an applicant has, the higher the interest rate bracket they fall into. To this extent, the affordability can be affected, with approval with low credit scores essentially meaning higher monthly repayments.

To that extent, it is worthwhile for applicants to invest some time into improving their credit scores. Simply get a copy of your credit report to find out your official score, then look at where the weaknesses lie. It is also possible to get the score reviewed before applying for the mortgage loan, correcting any miscalculation there may be.

Affordability Is The key Concern

While so many people connect credit scores with affordability, the connection is not actually as close as is generally thought. Affordability rests on issues of income and the extent of existing debt. Basically, if there is insufficient excess income, then a lender will not approve a mortgage loan for bad credit applicants.

Another key part of establishing affordability is the debt-to-income ratio, which stipulates that a maximum 40% of excess income be made available to make the repayments. It means that even if the excess income is $1,000, no more than $400 can be committed to the mortgage loan repayments.

So, even if it is possible to secure approval with low credit scores, the issue of having ample cash to make the necessary repayments is far more important.

Where To Apply

Of course, finding lenders that offer mortgage loans for bad credit applicants can be a challenge too - especially when competitive terms are needed. While most traditional mortgage providers are ruled out because of their poor terms, subprime lenders are worth approaching.

Subprime lenders are famed for their higher-than-average interest rates, but they have an advantage over other sources in that approval with low credit scores is more likely. This is because they target this niche area, and are experts in bad credit lending.

However, they are also viable because they offer longer mortgage loan terms, which means that the size of the monthly repayment is kept very low - and therefore very affordable. The result is that they are ideal for bad credit applicants, particularly those with scores of less than 620.

She clings to a wet freezing blanket because that’s the only familiar thing she has left, the only thing to remind her of home. Her owners carelessly dumped her and her belongings in a middle of a puddle and drove off- their New Years resolution complete, the trash has been taken out. Now this poor dog is glued to the dirty cloth, terrified to move, scared to trust anyone because the heartbreak of the ultimate betrayal is settling in as the temperatures drop. She’s hurt and hopeless- nobody wants a dirty broken-spirited pit... and to be honest she doesn’t want to let another human near her- the pain is just not worth it. She is in desperate need of a foster and a rescue - she only has hours before dog catchers arrive and once she enters the shelter system we all know the only way she will be getting out of there is in a black trash bag headed to the landfill - she will be dumped like trash one last time.
First and most important is to find a good honest reputable mortgage lender in your area who has been in business for some time and who is in good standing with the Better Business Bureau. You can get referrals for a mortgage lender or broker from a friend, neighbor or relative or conduct a search on the internet.

The second tip is to not believe all the "teaser" interest rates that you may see online or on TV commercials, that simply get you to call, then try to switch you. A good example is that I recently saw a TV ad advertising 2.75% 2.99% APR, for a "fixed Mortgage". Being in the industry for as long as I have, I knew they were not talking about a 30 year fixed, but a 15 year fixed and many people do not realize that until they the prospective lender. Call 2 or 3 mortgage companies and ask for a home loan quote, using your scenario. (loan amount, home value, credit standing, etc).

A third important fact when looking for the "lowest" interest rate is to be sure and ask the company you are calling, what their "Total Closing Costs" are. There is still a lot of "tricks" used out there that do not tell you the whole story.Get their "total closing costs" and also a zero or low closing cost option. Compare the rates and closing costs to see how long it will take you to recoup your closing costs.

The fourth tip, when shopping for a home loan, is to make sure the loan officer or loan originator is experienced and will not try to get you to pay up front fees, without the proper determination of all factors. These factors include, trying to get a "ballpark' idea of what your home is worth, before, you spend the $450.00 average cost of an appraisal. Another example of a proper determination, of whether the loan will go through, is your debt ratio and whether it fits the guidelines of Fannie Mae or Freddie Mac (which is where most home loans are sold).

The fifth tip is to see if the company has any testimonials of satisfied customers and a local office where you can meet with the on officer if you need to come in and talk to them. It can be difficult when dealing with companies that are out of state. Also ask them how long the process will take and where they do the processing of your loan.

There are many other factors to consider when shopping for your next mortgage, but these few tips should help you.
My heart breaks for her, she is petrified in fear. She has been attacked... by what we are uncertain! The wounds are on both ears and her neck, they are all infected and have begun to form an abscess. She has started on antibiotics and was given some pain medication.

She will need to return for daily wound care and is having surgery on Monday to stitch up the wound and dental care for all of her broken teeth.

She is in east Dallas. Please fill out a foster app so she can get rescue secured once there’s a foster home if you can save her life and give her a warm place to lay her head tonight.
Home Loans With Bad Credit: Sure Steps To Securing Approval

For those bad credit borrowers hoping to buy their own home, there is much to feel relieved about. While it might seem that getting a home loan with bad credit is practically impossible, there are options out there that can see their dream become a reality. However, as with all financial products, there are criteria and conditions to satisfy first.

For lenders, the economic uncertainties of the last few years have left them cautious so they are naturally hesitant when it comes to considering applications from those who may be seeking loan approval with poor credit history. But there are positive signs to be considered too.

An increasing number of mortgage providers are now offering carefully structured home loans for those with low credit scores, spurred on by the fact that many bad credit borrowers only became so as a result of the economic crises. So, as long as the criteria are met, approval is possible.

How To Qualify

So, what are the criteria that applicants need to satisfy if they are to successfully apply for a home loan with bad credit? Well, the basic conditions are pretty straightforward, with applicants needing to be over 18, US citizens (or legal long-time residents) and in full-time employment.

However, employment must also have been held for a period of at least 6 months prior to submitting the application, and all necessary documentation should be provided to prove the fact. The bottom line is that the mortgage provider has to be 100% sure the applicant is capable to making the repayments before they will consider granting approval with poor credit history.

Perhaps most significant of all, however, is that the lender must be sure that whatever financial troubles led to their credit score falling are over with. If a stable financial future can be indicated, there is a very strong chance of getting the home loan.

The Issue Of Existing Debt

One of the key factors in successfully applying for a home loan with bad credit is that the mortgage itself is proven to be affordable. And a critical part of that achievement is in showing that existing debt is not significant enough to cause trouble.

This is where the debt-to-income ratio comes into play, with its 40:60 limit stipulating that just 40% of excess income can be used to commit to loan repayments. What this means is that if mortgage repayments push the share over 40% then the application will be rejected.

So, securing approval with poor credit history is dependent on staying within the ratio. This might seem unfair, especially when it might seem that sufficient funds are there to make repayments. But the rule is designed to ensure the home loan borrower does not fall into further financial trouble.

How To Navigate The Ratio Rule

If the key issue in securing a home loan with bad credit is the impact of the debt-to-income ratio, it is worth noting that there are ways to navigate around the problem. The best way to do so is to clear existing debt, thus freeing up extra funds to cover mortgage repayments.

Using a debt consolidation loan, all existing debts can be paid off and replaced by a single debt. The cost of the debt is cut because 4 or 5 separate interest rates are replaced by one, and with a long enough loan term, the monthly repayments are slashed. With extra cash freed up, approval with poor credit history is helped greatly.

It is also possible to improve your chances of securing a home loan if the size of that loan is reduced. This can be done by increasing the size of the down payment made. By paying 20% of the purchase price as a down payment instead of 10%, the mortgage falls to 80%, instead of 90%.