| Getting a mortgage can be close to impossible if you | | | | are: |
| do not have excellent credit. Since the sub-prime | | | | 1. You need a place to live, and can no longer rent, or |
| mortgage bust, mortgage lenders have restricted their | | | | no longer wish to. Renting is a large drain on your |
| lending. Now, only high score borrowers- those | | | | monthly expenses, and you can never gain from the |
| borrowers with a 720 credit score or higher- can | | | | rent you pay. If you own a home, every payment you |
| receive a mortgage approval. | | | | make reduces your principle, or how much you owe a |
| To better understand why borrowers with poor credit | | | | mortgage lender. In this way, over time, home owners |
| are turned down by banks, you first have to know | | | | buy back their homes. When the home is completely |
| what bad credit really is. Credit is the general term for | | | | paid off, it is termed "free and clear." A homeowner |
| you history of loan payments to any creditor, such as | | | | can also refinance their home, and take cash out if |
| a credit card company, a car loan company, a bank, a | | | | needed. |
| mortgage lender, and so forth. These creditors collect | | | | 2. You already own a home, and need to refinance. If |
| all your payment history, called a credit report, and | | | | you took out a loan during the sub-prime mortgage |
| share it with each other over 3 large credit information | | | | boom years of 2004-2007, you may owe more on |
| companies. These companies are called Experian, | | | | your home than it is worth. This makes it impossible to |
| Transunion, and Equifax, and they gather all your | | | | refinance. You may have an adjustable rate, and your |
| information and score you- similar to a report card. | | | | monthly payments may be very high. There are many |
| If you have a poor credit report, your score might be | | | | other reasons, including loss of job, divorce, and so |
| equivalent to a D-. No lender will want to give money | | | | forth. |
| to a D- borrower. This is why it is very likely you will | | | | Now you need to know your options. In order to get a |
| not get a mortgage approval from a bank or | | | | bad credit mortgage, you need to find the mortgage |
| mortgage lender. | | | | lenders who cater to borrowers in your situation. Bad |
| Now we will explore the options for borrowers with | | | | credit mortgage lenders have extensive options for |
| bad credit who need a mortgage. The reasons to | | | | borrowers. And although you will have to pay a higher |
| seek out a mortgage, even though you have bad | | | | rate, the benefits of buying or keeping your home |
| credit, are many. Some of the most common reasons | | | | outweigh the costs. |