No Credit Check Mortgages
Saturday, November 04, 2006
If you're applying for a new home loan, one of the first items
a potential lender will request is your permission to perform a
credit check. If your credit history is a bit shaky or downright
poor, you might consider the so-called no credit check
mortgages. While any legitimate lender will require a credit
check at some point, there are many who specialize in helping
borrowers with bad credit. They have helped people in your
situation find the right home loan at an affordable rate.
First, it's important to understand how your credit score is
determined, and how it is used. Typically, the three credit
bureaus (TransUnion, Equifax, and Experian) calculate their
scores based on a number of key factors including your payment
history, the amount of debt you currently owe, the length of
time you've carried that debt, and the number of new accounts
you hold.
Lenders check all three scores and generally work with an
average when assessing your loan application. When opting for
no credit check mortgages, you can discuss how the lender uses
your credit information. Talking to a loan officer early in the
process can save you time, money, and frustration.
The longer your good credit history, the higher your score. The
higher your score, the less risk you represent to a potential
lender. In general, credit scores range from 340 to 850.
Borrowers with higher scores (700+) tend to receive more
favorable interest rates. Don't be discouraged if your credit
score is not high, however, because today's lenders provide a
wide range of loan products, including no credit check
mortgages.
Although these lenders still require a check of your credit,
they will weigh other factors when evaluating your loan
application. If you are able to verify your income with a W-2,
deposit receipts, or recent pay stubs, and if you can provide
sufficient personal references and certain other documentation,
you may qualify for one of the no credit check mortgages. You
may not enjoy exactly the same loan options as a borrower with
excellent credit, but you can qualify for a home loan that will
work for you.
Providing mortgages to borrowers with less-than-perfect credit
is actually a profitable arrangement, as the lenders stand to
profit from working with people who have been turned down
elsewhere. And getting matched with lenders who offer no credit
check mortgages is easy, if you know where to look. Try online
search engines, mortgage brokers, banks and other institutions,
and don't forget personal referrals. Having bad credit won't
necessarily prohibit you from finding a loan.
Remember, once you qualify and close the loan, you have an
outstanding opportunity to rebuild any credit problems. Honor
the lender's strict repayment requirements by making your
mortgage payments on time, every time.
About The Author: Past credit problems are no problem! Your
home equity, not your credit history, secures your loan and
great rate. Visit Home Loan Center to learn more our bad credit
home loans. http://www.homeloancenter.com
posted by Dennis Cheesman @ 6:51 AM,
