Thursday, March 5, 2009

Few useful ways to get your subprime mortgage approved by the lenders….

I think to get mortgage loan from the subprime mortgage lenders are much more easier then the general mortgage loan provider. If you have any bankruptcy or foreclosure in your past record then also you may get the mortgage loan from them. Their interest rates are also competitive but it will be more better if you will pay any down payment. So, for you here are few tips below to get your subprime mortgage approved by the lenders.

1. Check your credit report first :

Check your credit report properly for finding the errors. In this case credit report agency will be responsible for any mistakes, so notify them in writing as soon as possible. Also let the information provider know too.

Beside this if you have any bankruptcy or foreclosure before then just include a separate letter to let them know what was the reason behind this. Financing companies will look more favorably on a bankruptcy caused by job loss or illness.

2. Go for down payment :

If you want to improve your application then just go for down payment. Generally 10% is very usual but if you will go for more than 20% or 25% then you will qualify for better rates. Because down payments will reduce the risk of the lenders.

Apart from this if you will pay your debts or make any investments, it will also help you.

3. Adjustable rate mortgage is a good options :

All the subprime mortgage lenders are providing different type of financial packages. But I think adjustable rate mortgage (ARM) will be good for you because here the monthly payments are low. Atleast in the beginning.

But then also my personal opinion go for market shopping & try to find out the low costing loan. But before going for it read all the terms & conditions properly. But remember one thing that you can improve your credit to good standing in two years and refinance for better rates. So, all the best from my end & if you need any further help regarding this please feel free to contact me.

1 comment:

G said...

Hi there, great blog....

What do you think is going to happen towards the back end of 2009. Are we going to see a big influx of re-mortgages once the the BOE start to hike the base rate back up?

I am interested to here your thoughts

Feel free to check my blog Inside UK Mortgages

I seem to think that we will see a rise in August, November and December.

Anyway, thanks G