Mortgage brokers can find the best home loan for you based on your credit score. Before lenders started offering different kinds of home loans, it was impossible to get a mortgage loan with bad credit.
Check out our list of recommended online mortgage brokers in California.
There are many mortgage loans and lenders who focus on both good and bad credit.
Options for people with good credit who want to buy a home
Having a good credit score makes it easy to get a better mortgage loan. First of all, you are a prime borrower if your credit score is above 680. You can now apply for a mortgage with any company and get the best rates.
Also, people with good credit may be able to get home loans with no money down up to 107 percent. This type of financing is perfect for people who want help with their down payment and closing costs. Also, investors in real estate can use 107 percent financing to get the money they need to make improvements to the property.
People with good credit may also be able to get a no-documents loan or a loan based on their stated income. Both options are good for people who are self-employed or whose income is hard to prove.
Poor Credit Loan Option
Even if you have bad credit, you can still get a mortgage loan. Lenders know that it's hard to keep up good credit. Bad credit can happen to good people for many different reasons. For example, losing your job or getting sick can put a strain on your finances. When this happens, it's hard to keep making payments on time.
Most mortgage lenders and brokers believe in second chances, so they have a number of loan programmes for people with bad credit. This includes loans with no money down, loans for VA homes, loans for people with low income, etc.
How to Fill Out a Mortgage Loan Application
If you have never bought a home before, mortgage lenders and brokers can help you fill out the application. Before you fill out a mortgage application and send it to a lender for approval, get several quotes from different lenders. If you use a broker, you'll automatically get more than one offer.
There are many reasons to get more than one mortgage quote. Rates and terms vary from lender to lender. You can compare different loan packages and choose the one with the lowest mortgage rates if you get more than one offer.
