Let's face it - it's becoming more and more difficult to find lenders who offer a mortgage for bad credit borrowers. A deadly cocktail of Exotic ARM, High LTV, and Poor Credit loans have caused many subprime lenders to close their doors, and has reaped havoc on the stock market. However, there is still hope - even for those of us with "less-than-perfect" credit!!!
Although the days of the "No income? No credit? No problem!" loans are coming to an end, there are still loan programs available for most borrowers - your loan officer will just have to dig a little deeper to find them.
If you think you will be needing home financing in the near or distant future, do yourself a favor and start getting your ducks in a row now - I recommend the following 3 steps:
1. Meet with your loan officer - It is good to have what I call a "pre-loan check-up" so that you can begin to strategize, and identify any potential issues with your profile. Have him pull your credit, check income, assets, etc.
2. Work to correct any possible pitfalls BEFORE you begin the loan process - This could include fixing errors on your credit report, etc. Your loan officer should be able to tell you how to improve your profile.
3. Schedule an annual "financial check-up" with your loan officer to make sure that your profile stays strong and that there are no errors on your credit report - this is also a good way to make sure you don't become a victim of identity theft!
Even though lenders are tightening guidelines, and becoming more credit-score-driven, the bottom line is that there will ALWAYS be people who need to borrow money, and there will ALWAYS be people willing to lend it. I believe that the market will remain fairly volatile over the next year or so - but that eventually we'll see some of the aggressive subprime programs coming back - although the rates probably won't be quite so aggressive this time!
Jeremy Weiss is a Mortgage Consultant out of South Jordan, UT. He has been in the mortgage industry since 2003. During that time he has had the opportunity to work with borrowers from many different walks of life. He believes that knowledge is power - especially in the mortgage industry.
Check out his blog: http://mortgageforbadcredit.blogspot.com/
Article Source: http://EzineArticles.com/?expert=Jeremy_S._Weiss
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