The 7 Biggest Bad Credit Home Loan Mistakes
Written on 8:18 PM by zorayda
Acquiring a home loan is a very serious responsibility and involves big risks. The risk gets even bigger with bad credit home loans. Obviously, home loans for bad credit require higher rates than mortgages offered to those with excellent credit. For this reason, anyone who plans on getting a bad credit home loan must take all the necessary precautions before signing up for a loan. Here are the 7 biggest mistakes one can commit when applying for a bad credit mortgage.
Not taking the time to shop around. True, many lenders offer home loans for people with bad credit but not all of them give the best deals. What may seem like the best deal offer may turn out to be not good at all. To compare lenders more accurately, be sure to check the APR of the loan as this includes the interest rates plus other fees associated with a loan.
Not preparing your credit report. The status of your credit history will play a huge role in the rates you’ll get. Obviously, the better your credit score is, the better your home loan rates will be. Check your credit report and see if you can make some improvement in your credit rating before applying for your home loan.
Not getting a pre-approval. Getting pre-approved is free and easy. More importantly, it enables you to set a realistic budget for the home you will purchase. It will also save you time trying to check on houses that do not really fit your budget.
Continue reading: The 7 Biggest Bad Credit Home Loan Mistakes
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