| Persistence is the key working toward getting | | | | accounts that you can. Every account that you pay |
| approved for a bad credit mortgage loan. There are | | | | off will help boost your score. Once you have done |
| many factors that you, as a borrower have control | | | | this, get a letter of notification that the account is paid |
| over that can help you get approved faster and | | | | off and talk to your lender. Most lenders have |
| easier. There are guidelines that most sub-prime | | | | programs where they can, for a $75 fee per item, |
| lenders go by that, if you know them, can help you | | | | provide proof to the credit bureaus that an account |
| move through the process without getting stuck, | | | | has been paid off and have your credit and credit |
| unable to get financing. | | | | score appropriately adjusted within a day or two. This |
| If you have a bankruptcy or foreclosure, even if they | | | | program is sometimes called a "wrap it up" service. If |
| are recent, do not despair. Many sub-prime or bad | | | | you are in a hurry to get financed, this may be worth it |
| credit mortgage lenders have what's called, guidelines | | | | to you. |
| for bankruptcy or foreclosure seasoning. That means | | | | 3. Pay down open credit line balances. If you can even |
| that they have a set amount of time that must go by | | | | pay down the balances on any open lines of credit, this |
| from the time of a bankruptcy or foreclosure before | | | | will boost your credit score. Your credit score is |
| they will lend to a borrower. Usually this time is 2-3 | | | | lowered when lines of credit are maxed out. You can |
| years, but many sub-prime lenders have no seasoning | | | | make good use of your money by paying down credit |
| time, which means, if your credit score is above a | | | | card balances to boost your score. |
| certain point, you could get approved the day after | | | | Once you have used some of these techniques to |
| your bankruptcy discharge. Other sub-prime lenders | | | | boost your credit score, be persistent about contacting |
| have bankruptcy or foreclosure seasoning of 6 | | | | and applying with many different bad credit mortgage |
| months or a year. The biggest factor here will be your | | | | lenders. Many bad credit mortgage loan brokers claim |
| credit score. | | | | that if they can't do the loan, then no one can. That is |
| Sub-prime or bad credit mortgage lenders will look | | | | simply not true. All mortgage loan brokers have |
| closely at your credit score. In order to get 100% | | | | connections with many different lenders and loan |
| financing with bad credit, lenders will usually need to | | | | programs. What may be impossible with one, can be |
| see you have a credit score of at least 600 or higher. | | | | very possible with another broker. |
| There are quite a few things you can do to raise your | | | | If your score is around 600 or slightly higher, you will |
| credit score to be above this 600 mark. Here are a | | | | probably have a pre-payment penalty. Pretty much all |
| few suggestions: | | | | bad credit mortgage loans will come with a |
| 1. Check your credit report for inaccuracies. Make sure | | | | pre-payment penalty. Talk to your lender about the |
| all accounts included in bankruptcies and foreclosures | | | | details of the pre-payment penalty. Find out how long |
| are reporting accurately. If they show up as an open | | | | the penalty will last and exactly how much money the |
| collection or unpaid account, charge-off or something | | | | penalty is. How much is the fine for pre-payment on |
| else, this could be unnecessarily hurting your credit | | | | the loan? This is an important factor to consider when |
| score. It will look like another, separate credit blemish | | | | comparing lenders. |
| instead of just the one. Make sure the bankruptcies | | | | To get a approved for a bad credit mortgage loan, be |
| and foreclosures are reporting accurately. Make sure | | | | persistent, work on your credit score as much as you |
| accounts that are paid off, show up as being paid off, | | | | can to get it above that 600 mark and apply with or |
| or accounts that are closed, show up as being closed. | | | | contact many lenders to compare mortgage loan |
| 2. Pay-off any small collection accounts or past due | | | | programs. |