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Poor Credit:
"Bad Things Happen To Good People"
"Don't Sweat The Small Stuff"
Credit challenges can be a lot like those two book titles. People that have had credit blemishes in their past in most cases have a logical and reasonable explanation (i.e., medical, divorce, business failure or loss of employment).
It used to be that folks with any derogatory credit or late payments were shut out of the mortgage market. Today things are quite different. The credit markets have opened to borrowers ranging from A- (one or two late payments) to D (recently discharged bankruptcy, foreclosure or multiple late mortgage payments).
The amount of equity and the interest rate that will be required by the lender will increase with the severity and recentness of the derogatory credit. If your credit is poor, you must be able to offer a lender something as a trade-off to induce the lender to see the merit in making the loan to you. Equity is what will be needed in this situation. If you are unsure about how to evaluate your credit or your equity position, please feel free to contact us. We can discuss your mortgage financing options. If there is a loan available for your situation, we will be able to locate the best rate and terms through our large database of wholesale lenders. We have at our disposal over 150 lenders and their various loan programs to fit almost any borrower's needs.
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