In recent years bad credit mortgages have been readily available, however in 2009 that is no longer the case. With the housing market on the decline, so are the bad credit mortgage operations. Once easily obtained bad credit mortgages are now on a rapid decline and looks to not improve in the year 2009.
If you have bad credit, meaning a credit score of less than 700 obtaining a mortgage might be extremely difficult for you. Some smaller banks and credit unions will still offer a bad credit mortgage before the large nationwide banks will. A bad credit mortgage loan may be attainable as an adjustable rate mortgage and open up the possibility of a refinance in the future, when your credit score has increased. The adjustable rate mortgage might entail a balloon payment, private mortgage insurance and or higher interest rate than the prime rate.
If you are searching for a bad credit mortgage first you should view your credit report. An inaccurate credit report is often the culprit of low credit scores you can work with the credit bureaus to repair or remove any inaccurate information located in your personal file. Next prepare your documents that will be required to obtain a bad credit mortgage, typically it is 2 years worth of tax returns, discharged bankruptcy papers, marriage certificates and/ or divorce decrees, your current liabilities and income verification.
Contact a professional mortgage broker he or she will be on your side during your entire loan process from finding the right lender, filling in the paperwork and letting you know if a bad credit mortgage is an option for you and your situation. Be prepared to be turned down, but you really won't know unless out try. Research your location, your current income and your credit worthiness take steps to improve your credit scores to ensure that you have the option in the future to obtain a home mortgage at a lower interest rate.
