Poor Credit Mortgages

Written by Tara Peris
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It is a common misconception that poor credit mortgages are difficult to obtain. To the contrary, the current market is aimed at helping as many people as possible find their way into new homes. Thus, viable mortgage packages are within reach for most people, regardless of financial standing.

Let's get one thing clear: It helps to have good credit. People with strong credit histories routinely obtain the best mortgage rates because they are considered low loan risks. However, these are not the only folks who obtain loans, and if your credit leaves something to be desired, you need not give up hope.

A Second Start

Credit problems are not uncommon. In fact, a good many people have flawed records and don't even know it. Thus, for any potential buyer, the first step of the mortgage process is to obtain a credit report. This will provide a sense of your financial standing and will help you determine which step to take next. It often helps to familiarize yourself with your report history and then to review it with different lenders to get a full sense of your options.

If your history is less than perfect, or if you have filed for bankruptcy in the past, you may want to seek the services of a lender who specializes in poor credit mortgages. These experts can help you explore the options available to non-standard borrowers and can help you get off to a fresh start with a new mortgage. With the right loan, you can put yourself on the path to restored credit, the key is to structure your monthly payments so that you can afford them each month. Your payment should not exceed 30 percent of your monthly income.

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