Every day, subprime mortgage lenders take applications online. Processing information over the Internet speeds up the process and saves money on offices and staff. If you fill out your application online, you might be able to save money on fees or rates. Follow these tips if you want to get a mortgage.
Factors of a Sub-Prime Mortgage
Each subprime mortgage lender has its own way of giving loan scores to borrowers. The better rate you can get is based on how high your score is. Your credit history is important, but so are your cash on hand, your income, and any down payments you can make.
On average, subprime lenders like to see at least a 20% down payment. But they have many different loan terms. You can even get a mortgage with no down payment, but you will have to pay a couple of points more.
Whether you choose a fixed or variable rate will also affect how much you can borrow. Most ARMs have lower monthly payments, which means you can borrow more money. Subprime lenders also deal with interest-only loans and payments that are made all at once.
Forms for applying for loans online
The forms to fill out online to apply for a loan are easy to use. You give your personal information, like your name, address, and social security number, over a secure connection. If you have a property in mind that you want to buy, you should also include its address and selling price.
If you asked for a loan quote, you might not have to give any more personal information. You can find a lot of information about your money in databases. Before closing, the financing company will finish your application and ask for your OK.
Getting the last papers done
In most cases, it takes about four weeks to get a mortgage. The subprime lender has to check your credit and the value of the property. An escrow company will also help you handle the exchange of money, especially the closing costs and points.
As with a regular loan, you will need to approve and sign your paperwork. You will need a notary instead of going to a home office. Most companies can set up a time for a notary to come to you. Once the paperwork is turned in, the money should be sent out in three days.
