Top 8 Faqs By High Risk First Time Home Buyers
Before buying a home of your own, you must consider various things like your credit score, down payment and money to pay closing fees. This might help you to reduce your interest rate and secure a low rate mortgage with great terms. Postponing to own a home might not be a wise option as home prices are increasing.
FAQs by High Risk First Time Home Buyers
1.Can I get a mortgage loan with a bad credit score?
Yes, you can get a mortgage loan irrespective of a poor credit profile as there are a large number of bad credit personal loans available in the market. You should however, understand the terms, rates and fees of the brokers and lenders.
2.Is it worth it to secure a mortgage loan for bad credit situations?
If you have poor credit score, then you might be denied the standard mortgage loans. You might also have to pay higher interest rates than those with excellent credit scores. In fact, if you have bad credit, you might have to pay 30 percent more in interest than the norm on mortgage loans and car loans.
3.Should I use the internet to search for a reliable mortgage lender?
Yes, the internet can help you look for a lender. You should do adequate research and compare rates to get a bad credit home loan guaranteed at a much lower interest rate.
4.Are there many lenders in the market?
There are many lenders that offer bad credit personal loans for those who have poor credit score. They also offer financial assistance. However, you should look for those who specialize in high risk mortgage loans especially if you are a first time home buyer.
5.How should I shop for a bad credit home loan?
Prior to applying with a bank or a traditional mortgage lender, you should analyze your credit report and evaluate your financial situation. You should then submit a loan application and compare the interest rates offered by mortgage lenders.
6.Should I choose a bad credit personal loan which offers low interest rates?
You should not fall prey to mortgage lenders who are offering home loans at low interest rate but have hidden costs. This might lead to you paying much more than the loan amount. Most mortgages have either a fixed rate (payments remain the same for the life of the loan) or an adjustable rate (payments adjust up or down in accordance with national interest rates) and a term (amount of time you have to repay the loan) of either 15 or 30 years, you should choose one which matches your requirement.
7.Will I have the same cash down if I am a first time home buyer as compared to conventional buyers?
Most first-time buyer programs require about 3% cash down, as opposed to conventional programs that require up to 20% of the sale price of the new home.
8.If I am denied the home loan the first time, will I still get a mortgage loan?
At times, you might be denied a home loan if you are a first time buyer and are at high risk. However, a mortgage lender can offer a program with different terms and conditions and might have higher interest rates.
If you are a home buyer and it is your first time, you should check all the details before signing the dotted line, especially if you are at a high risk.