Thursday, October 16, 2008

Home Loans For People With Bad Credit

I did not know that it was still possible to get subprime mortgages with the Economy the way it is, but apparently there are still companies out there offering them. The harder it gets financially there are more people that need loans but don't qualify according to normal bank standards. There are companies out there who can provide loans to people who have bad credit if you agree to either provide a larger down payment or you agree to a higher interest rate. Auto dealers have been providing bad credit car loans for years and charging 18%-20% if they can even get you approved and they get away with it every day. I guess the same principles apply to the subprime mortgage business, if you need the loan bad enough you will agree to the terms. Just because you have bad credit doesn't necessarily mean you can't pay for something. You still have to have housing and you still have to have a vehicle to drive to work. If you buy within your means and you use your head instead of your heart, you can still get buy with a higher interest rate.

Don't buy out of your reach. If you make $30,000 a year you shouldn't be buying a $200,000 house or a $40,000 car. The lenders might approve you for it, but that doesn't mean that you can afford it.

If you can't afford to save at least $50.00-$100.00 per pay period to designate towards an emergency savings, you probably can't afford to buy a house.

If you decide that you want to try to get a loan with less than perfect credit, then the is one company that can help you find the loan that is right for you. They will basically shop rates for those companies who would approve you and then you get to choose the one that you want to go with.

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1 comment:

Lucas said...

I have used loans for people with bad credit before when I needed some last-minute cash after banking hours. It was a great help. I only did the loan for a few days, paid a low fee, and got the money I needed. It was a great benefit to be able to have this service.