Buying a Home With Bad Credit - Tips on Finding the Right Broker or Lender

You can buy a home with a bad credit record; you just need to find the right mortgage financing package. Before you sign up with the first company that offers you a loan, remember to research offers to be assured you are getting a fair deal.

Know Your Credit Rating

Your credit score is one of the biggest factors in determining the points you will pay for your loan. People with scores between 620 and 800 have near perfect credit and will have the lowest rates and fees. Scores between 620 and 550 mean an interest rate or two higher. 600 is usually the cutoff point for 100% financing. Scores less than 550 mean mortgage interest rates are up to 5% higher with up to five points. Lenders will also require a down payment between 5% and 20%

You can find your score online along with your credit report. This is a good time to make sure all the information is correct on your record. Any discrepancies should be checked out and corrected before applying for a loan.

Know The Fees

Arm yourself with information so you will know what are reasonable fees for your type of loan. Mortgage brokers are paid for their work through points paid up front or through the lifetime of the loan by the lender. Lenders also make money through points.

It is reasonable to expect to pay up to five points for a mortgage loan, but any higher and you should be wary. There are always exceptions to this, so use your best judgment and compare companies.

Get Multiple Offers

Mortgage lenders can vary as much as 5% in their interest rates, so you should compare financing packages. The internet has made comparison shopping easy. You can get bids from multiple lenders and read over their offers from the comfort of your home.

Read The Fine Print

Once you get an offer from a mortgage lender, make sure you read the fine print. Interest rates are easy to compare, but you should also look over the fees that are involved which can add up to thousands of dollars. Also, be sure to understand any fees for late or missed payments.

To view our list of recommended bad credit or sub prime mortgage lenders online, visit this page: Recommended Sub prime Mortgage Lenders Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and the latest news about various types of loans.

In The News:
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://asia.news.yahoo.com/081203/3/3szn4.htmlcid=1277091985ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNHitI5A3InRyc_OD3BtSkaEwp6qGAimg src=http://news.google.com/news?imgefp=BfL5p4De5PgJimgurl=sg.yimg.com/xp/reuters/20081203/20/464274511.jpg width=80 height=51 alt= border=1brfont size=-2Yahoo/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3Da_i8357NDD7k%26refer%3Dhomecid=1277091985ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNEkxwJgZz__3A4VG4YGMTPXPRHhNgUS MBA’s bMortgage/b Applications More Than Doubled Last Week/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr12 hours ago/nobr/fontbrfont size=-1The bMortgage/b Bankers Association’s index of applications to purchase a home or brefinance/b a loan jumped 112 percent to 857.7, the highest level since March, b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/bulls-outlast-bears-wednesday-grudge/story.aspx%3Fguid%3D%257BD706D818-06FC-4461-9AA0-6BE928A0AF20%257D%26dist%3Dmsr_3cid=1277091985ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNEqEXiHvd_RKgJAd4pgOMn_zEhqVgFINANCIAL STOCKS Bulls outlast bears in Wednesday grudge match/a font size=-1 color=#6f6f6fnobrMarketWatch/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.usatoday.com/money/economy/housing/2008-12-03-mortgage-applications_N.htmcid=1277091985ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNFKaWekx0f2-EeOYlfkXFev5YbSowFalling rates spark rush to bmortgage/b applications/a font size=-1 color=#6f6f6fnobrUSA Today/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.google.com/hostednews/ap/article/ALeqM5iGO3ptAO6a54_9bVj7EorgcgBWSQD94RAE1G0cid=1277091985ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNHOGcG7afrcs6Uv-vBYMOICj35BIgbMortgage/b application, brefinance/b volume surge/a font size=-1 color=#6f6f6fnobrThe Associated Press/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/economicNews/idUSN0333008520081203cid=1277091985ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNGeUe4KakreYpu9C2r8w73YMQYuwQnobrReuters/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://economy.kansascity.com/%3Fq%3Dnode/409cid=1277091985ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNGJTtjFQ34qt2FfaesergewGQ618AnobrKansas City Star/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1277091985hl=ennobrall 131 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.easybourse.com/bourse-actualite/marches/mortgage-refinance-applications-soar-as-rates-fall-573131cid=1277284710ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNFWccxYs7SOTWE_e-pfiZDygn2l-wbMortgage Refinance/b Applications Soar As Rates Fall/abrfont size=-1font color=#6f6f6fEasyBourse.com,nbsp;Francenbsp;-/font nobr2 hours ago/nobr/fontbrfont size=-1The bMortgage/b Bankers Association#39;s index of brefinance/b applications posted a record 203.3% increase over the previous week. Additionally, the US Treasury b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/big-rate-drop-sends-mortgage/story.aspx%3Fguid%3DABF1DD99-9E4D-4F47-94EE-7E0956A6FE64%26dist%3DSecMostReadcid=1277284523ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNGjL-ERG8D5BHiJ8eZKL8u49hjMXQbMortgage/b applications up 112.1% last week, due to drop in rates: MBA/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobr10 hours ago/nobr/fontbrfont size=-1Applications to brefinance/b an existing loan rose 203.3% last week, compared with the week before. bMortgage/b applications to purchase a home rose a seasonally b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://money.cnn.com/news/newsfeeds/articles/djf500/200812031551DOWJONESDJONLINE000859_FORTUNE5.htmcid=1277284523ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNEbj6BwOGDQE_ysDP_qwV6qMAGSMQUPDATE: Builders Soar On Lower Rates, But Pain Persists/a font size=-1 color=#6f6f6fnobrCNNMoney.com/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.dnronline.com/news_details.php%3FAID%3D33724%26CHID%3D1cid=1277284523ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNG_mhezacr8mu7Zw30dj-bwVzcn8A30-Year Rates At Lowest Since ‘03/a font size=-1 color=#6f6f6fnobrHarrisonburg Daily News Record/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://blogs.wsj.com/developments/2008/12/03/economists-stabilize-home-prices-by-cutting-them-drastically/cid=1277284523ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNEUR0PmZtT1CSIzs6P29AcfRxguNwEconomists: Stabilize Home Prices By Cutting Them Drastically/a font size=-1 color=#6f6f6fnobrWall Street Journal Blogs/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1277284523hl=ennobrall 11 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/ousiv/idUSTRE4B27JG20081203cid=1276773558ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNGHzNUaGmepBSl0e2swkURdULl3wALower bmortgage/b rates help but jobs, prices key/abrfont size=-1font color=#6f6f6fReutersnbsp;-/font nobr3 hours ago/nobr/fontbrfont size=-1Applications to buy and brefinance/b homes hurtled higher last week as the lowest rates since the summer of 2005 unleashed pent-up demand. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3Da0IsCAPhuJII%26refer%3Dhomecid=0ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNEl74SmGMmXlBNlDlQibtM2xxUsnwPaulson Considers New Plan to Lower bMortgage/b Rates (Update3)/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr17 minutes ago/nobr/fontbrfont size=-1While lowering bmortgage/b rates to 4.5 percent would allow most homeowners to brefinance/b into a cheaper loan, far fewer will actually qualify, said Rajiv Setia b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.google.com/hostednews/ap/article/ALeqM5gxwdhWlcBaOAu--sbHbnK6vFR9cQD94RI8AG0cid=0ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNGlbs9kNSHapwVX6BvUb4_6aCqcvQFinancial industry pushes for lower bmortgage/b rates/abrfont size=-1font color=#6f6f6fThe Associated Pressnbsp;-/font nobr6 minutes ago/nobr/fontbrfont size=-1That would have two benefits for the economy: Immediately adding money to the pocketbooks of homeowners who can brefinance/b their mortgages and reduce their b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.google.com/hostednews/ap/article/ALeqM5gxwdhWlcBaOAu--sbHbnK6vFR9cQD94RGMEG0cid=1277260420ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNHbABx6gTkSpwD44DHCJAT-46iYNQFinancial industry pushes for lower bmortgage/b rates/abrfont size=-1font color=#6f6f6fThe Associated Pressnbsp;-/font nobr1 hour ago/nobr/fontbrfont size=-1While the plan, if enacted, will help anybody looking to buy or sell a home, or brefinance/b out of an expensive bmortgage/b, it may not help those whose credit b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://raleigh.mync.com/site/raleigh/news%257CSports%257CLifestyles/story/20699/mortgage-brokers-now-is-good-time-to-refinancecid=0ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNFDbHc75GmsW2FJIOBF9MnLcjHpLwbMortgage/b Brokers: Now Is Good Time To bRefinance/b/abrfont size=-1font color=#6f6f6fMyNC.com,nbsp;NCnbsp;-/font nobr7 hours ago/nobr/fontbrfont size=-1By Lauren Hills, NBC17, 14 hours, 38 minutes ago While most money matters aren#39;t looking up right now, if you#39;re looking to brefinance/b your home, bmortgage/b b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601213%26sid%3DaSwRduPiiLjc%26refer%3Dhomecid=1277198152ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNFoSPiAcoD3Ztp6n7y5ViNTadObhgFed’s Kroszner Says Foreclosures Harming Middle-Income Areas/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr3 hours ago/nobr/fontbrfont size=-1b.../b the highest on record as home prices dropped and stricter bmortgage/b standards made it harder for homeowners to sell or brefinance/b, RealtyTrac Inc. said. b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.bloomberg.com/apps/news%3Fpid%3D20601068%26sid%3DaRtykQ8tqETY%26refer%3Dhomecid=1277269029ei=VyY3SfnsG5WO9QTa7dCxDwusg=AFQjCNEd157gqq0gXskWOwqvRh2TLto8wgUS Economy: Service Companies Shrink at Record Pace (Update1)/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobr7 hours ago/nobr/fontbrfont size=-1“Things overall still look bad, but this, together with last week’s doubling in MBA brefinancing/b, provide glimmers of hope,” Ian Morris, chief US economist b.../b/font/div/font/td/tr/table
mortgage refinance - Google News


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