If you are interested in getting a mortgage loan with bad credit then you are probably aware of the difficulties that it can present. People who applied for bad credit mortgages before 2007 would have found it much easier to get their loan approved. Due to the sub prime mess, many lenders and changed their lending requirements. No longer can you get a home loan approved with zero money down. Lenders are looking for different ways to ensure that their investment is protected.
People who are looking to get mortgage loans with bad credit should realize that they will have to go through a lot more work to get the loan approved. It is important that you start saving up your money for a down payment. Many lenders want to see the borrower have a minimum of 5-10% down for their loan. This large down payment will protect the lenders from the borrower if they were to default on their loan.
Another thing that you should be aware of if you are going to apply for a mortgage loans with bad credit is that you should have a good debt to income ratio. The debt to income ratio is the measuring stick that lenders use to determine whether or not you will be able to repay the loan. Having a higher ratio means that you are over leveraged with a large amount of debt. Having a large amount of debt usually means that lenders are less inclined to approve loans. Pay down you debts to help improve your debt to income ratio for your loan.
By Kris Mathews
0 Comments:
Post a Comment