5 Key Questions to Ask before Applying for Mortgage Lenders for Low Credit Scores

Clearlending

So, you have a bad credit score? Well, it happens. A few missed bill payments, some maxed-out credit cards, or even some circumstances that are beyond your control can affect your credit score. What to do? How to get approval for a home loan with a low credit score?

Well, mortgage lenders for low credit scores in Houston can help you with this. But before you apply for a loan to a lender, you should ask these questions –

  1. Can I purchase a home after declaring bankruptcy?

Yes, you can. But after you have claimed bankruptcy, you have to wait for a certain time to get a new mortgage. During the waiting period, you need to manage all your other credit on time and avoid opening too much new credit.

  1. Can I get a home loan after a foreclosure?

In case you’ve had a foreclosure, you will have to wait longer than you would after any other credit issue. You must know the date of the trustee’s sale before you talk to a mortgage lender— credit reports often misreport the actual date a property was finally foreclosed. Most of the time they mention the date the foreclosure was started. The period of foreclosure can vary from a state to another one. If extenuating circumstances were leading up to the foreclosure, including illness or job loss affecting the household’s primary earner, there may be exceptions allowing you to get a loan sooner.

  1. Can I refinance a bad credit home loan?

Yes, you can still refinance your loan even if you have bad credit. But the question is, does it make sense? Getting a lower interest rate is the chief reason why people refinance their mortgages. And bad credit can delay your access to the lowest rates. Your ideal option is to shop around to find the lowest rate offered to you and to work with a lender to improve your credit as much as possible before you apply for the loan.

  1. Can I have a cosigner on a home loan?

Yes, you can have a cosigner on a home loan. However, asking someone to be a decision that you should make carefully. The person who you choose will be on the hook for your loan in case you miss payments, which puts his or her credit score at risk.

  1. Can I have late mortgage payments and still get a loan?

Most home loan programs allow you to have a late mortgage payment or two and still be approved for a new mortgage. You should keep in mind that mortgage lenders are mainly concerned with verifying you’ll be able to repay a new home loan. Therefore, your payment history on a current mortgage will be taken very seriously.

Do you have any more questions? If not, then apply for a loan to a reputable lender and a go step closer to your dream of homeownership.

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