Home Loan Bad Credit
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Home Loan Bad Credit? You Can Still Find a Lender
Have you taken out a home loan in the past that you found difficult to repay? Did you manage to avoid having your home repossessed but ended up with home loan bad credit? Are you having financial difficulty now but don't know where to turn? All is not lost. Many financial institutions have now recognised that not everyone that needs a home loan has a perfect credit history and are offering bad credit home loans at reasonable rates.
It's very easy to take out an equity loan to finance home improvements, college educations or debt consolidation. It's easy to think that you will be able to afford the extra payment on top of your monthly mortgage payment. However if you have not budgeted properly you can find yourself in a situation where you put your home under jeopardy as a home loan is a secured loan. You also put your credit score under jeopardy too, as you will end up with home loan bad credit.
This bad credit history limits the number of lenders who will be willing to offer you any loan in the future. Some financial institutions will not offer loans to people who have bad credit at all. Others are far more lenient in their credit criteria and recognise that between 30% and 50% of all Americans are classified as non-prime or bad credit borrowers . It is these lenders that you need to identify if you have home loan bad credit.
There are plenty of banks, credit unions, mortgage brokers and specialist lenders that you can approach. The key is to be honest and let them know that you have home loan bad credit. If you are not honest it will only show up in a credit check and you would be rejected for the loan. They can help you to determine if you can afford to take out bad credit home loan, what the monthly repayments will be, what the interest rate will be, the term of the loan and any costs or fees associated with it.
Be aware! As you have home loan bad credit the interest rates will be higher than a standard home equity loan offered to people with an excellent credit history. In 2002 the average interest rate on a bad credit home loan was just 9.41%. Compare this to your credit card interest charges and realise just how much you can save by taking out such a loan rather than maxing out your plastic. Just make sure that the lender is reputable and you can afford to make the monthly repayments this time.